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ezrasweet
December 22, 2019
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Does anyone know how to account for a tax rebate in the bank feed?

  • December 22, 2019
  • 2 replies
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Original commenter did not share additional details
Best answer by RCV

I can guide you on how to handle tax rebate in the bank feed, ezrasweet.

 

You can record the tax rebate as a deposit and post it to your income tax expense account since it is a refund of your overpayment.

 

Here's how:

 

  1. Click the  New (+) icon.
  2. Choose Bank Deposit.
  3. Select the appropriate bank account from the Account drop-down.
  4. In the Add funds to this deposit section, choose the customer from the Received From drop-down.
  5. In the Account drop-down, select your income tax expense account.
  6. Enter the amount, then hit Save and close.

 

You can also reach out to your accountant on what posting account you'll need to use when recording the deposit.

 

I've got you an article for more details: Record and Make Bank Deposits in QuickBooks Online.

 

Once done, match the entered deposit in the downloaded bank transactions. You can check out this article for the steps and details: Download, match, and categorise your bank transactions in QuickBooks Online.

 

I'm just a reply away if you need anything else with managing downloaded bank transactions. I'm always here to help.

2 replies

R
RCVAnswer
December 22, 2019

I can guide you on how to handle tax rebate in the bank feed, ezrasweet.

 

You can record the tax rebate as a deposit and post it to your income tax expense account since it is a refund of your overpayment.

 

Here's how:

 

  1. Click the  New (+) icon.
  2. Choose Bank Deposit.
  3. Select the appropriate bank account from the Account drop-down.
  4. In the Add funds to this deposit section, choose the customer from the Received From drop-down.
  5. In the Account drop-down, select your income tax expense account.
  6. Enter the amount, then hit Save and close.

 

You can also reach out to your accountant on what posting account you'll need to use when recording the deposit.

 

I've got you an article for more details: Record and Make Bank Deposits in QuickBooks Online.

 

Once done, match the entered deposit in the downloaded bank transactions. You can check out this article for the steps and details: Download, match, and categorise your bank transactions in QuickBooks Online.

 

I'm just a reply away if you need anything else with managing downloaded bank transactions. I'm always here to help.

E
ezrasweetAuthor
December 22, 2019

Thanks for your help. I’m assuming I won’t be paying tax on this by accounting for it in this way?

MaryLandT
MaryLandT
December 22, 2019

Thanks for getting back to us, ezrasweet.

 

I'm glad to clarify this situation. You won't be paying a tax for accounting the rebate since you're only recording the credit. And, the amount is posted under the Income Tax Expense account in QuickBooks,

 

Upon sharing the solution mentioned by my colleague above, I still suggest consulting with your accountant. He/She might have specific instructions on how to classify your tax rebate. This is to ensure your transactions are correctly recorded in your books.

 

Feel free to read through this handy article for additional information: File your VAT return and record tax payments in QuickBooks Online. It includes detailed steps on how to pay and send your taxes to HMRC.

 

Let me know if there's anything else you need and I'm happy to help you out.

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