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vegahaloorcus
July 3, 2024
Question

How do I record a VAT payment made from a *personal* account?

  • July 3, 2024
  • 1 reply
  • 0 views

I want to record a VAT payment made to HMRC from my personal account which I don't have linked to QBO for obvious reasons. It didn't come out of my business bank account.

 

When I make business purchases from my personal account I use an equity account to show that money has come from me.

VAT payments can only come from a "Cash in hand/bank" or Credit Card account. How do I show that I have personally paid the VAT?

1 reply

MsNorthPND18
MsNorthPND18
July 3, 2024

Welcome to the Community, vegahaloorcus. We want to ensure we can provide a timely solution to your concern regarding VAT payment. I can share my knowledge to help you with your concern.

 

When adding VAT payment for the business expenses covered by personal funds and not reimbursing the expense paid into a personal account, follow these steps to enter the expense:

 

  1. Select + New, and choose Journal Entry. Then select the expense account.
  2. Enter the purchase amount in the Debits column.
  3. On the second line,
  4. choose Partner's equity or Owner's equity.
  5. Enter the same purchase amount in the Credits column
  6. Select Save and Close.

 

Once done, add your personal account, then use it when recording the VAT payment.

 

For more details about handing business expenses you made with personal funds, check this article: Pay for business expenses with personal funds.

 

In addition, you can refer to these helpful resources if you're ready to make liability payments:

 

Please let me know if you have any more questions regarding recording a VAT payment from a personal account. I am here to help you with your questions.

V
vegahaloorcusAuthor
July 4, 2024

Thank you for your response, unfortunately, this doesn't answer my question.

 

I am asking about recording a VAT repayment to HMRC (Taxes>VAT>Record Payment) from my personal bank account rather than my business bank account.

 

My personal account obviously isn't connected to QBO but the only options for recording a VAT repayment are from bank accounts.

P
payment after leaving
July 4, 2024

Hi vegahaloorcus Thanks for reaching out to us on the Community. As you have discovered you can only select bank accounts from the VAT payment section, you can also select credit card account. You could create your personal account as a new bank/chart of account and then create the payment. Are you intending paying the personal account back from the business account?

 

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