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M
mr_metal_man
July 6, 2022
Question

How do I record VAT paid to HMRC as a payment

  • July 6, 2022
  • 1 reply
  • 0 views

Hi all. Hoping for some help with how to enter a bit of an unusual transaction so it gets folded into the VAT return. Details as follows:

  • I purchased a machine from China. I paid 60% deposit in Feb this year - no VAT. I paid 40% balance in May this year - again, no VAT. The machine then shipped to the UK by sea.
  • On entry to the UK last week there was VAT payable. The VAT was paid to the UK shipping agent acting on my behalf who in turn passed it on to HMRC as part of the customs clearance process.

My question is - how do I record this payment purely as VAT? . . . .  I have an invoice from the logistics company that is all VAT - If I enter a bill or expense the value of the actual item is £0 because the full amount of the payment is VAT. As an example - (not actual number) : Bill amount = £1000, VAT amount = £1000, transaction amount is £0.

The only Account codes available are "VAT Control" and "VAT suspense" both current liabilities. 

 

I hope that makes sense and would appreciate any advice on how to record this correctly so it gets rolled into the next VAT return 

1 reply

Rubielyn_J
Rubielyn_J
July 7, 2022

I've got you some ways how to record VAT paid to HMRC as a payment, @mr_metal_man.

 

QuickBooks Online tracks your payment due dates in one place so you can avoid late returns and extra fees. To record VAT in your account, here's what you need to do:

 

  1. Go to Taxes, then choose VAT.
  2. Click Payments, then select Record Payment.
  3. Choose the bank account you've used to pay HMRC.
  4. Input the payment date and amount in the appropriate fields.
  5. Add a memo if needed.
  6. Lastly, click Save.

 

In addition, VAT Control and VAT suspense are only the default accounts use to record VAT payment. I also suggest to consult Accountant. They can provide the correct information and accounts to utilize and ensure your records are accurate.

 

I'm adding these articles to help you manage VAT in QuickBooks:

 

 

Get back to us here if you have other questions about tracking your VAT-related transactions. I'm always here to help. Keep safe!

M
mr_metal_manAuthor
July 7, 2022

Thank you for the reply. 

I have tried what you suggested but cannot see any way of doing this.

 

I go to Taxes. I look at VAT

There are 2 tabs - Payments and Returns

In the Payments tab I can see no option or button to "Make Payment" as you suggest. There are buttons for viewing and deleting existing VAT payments. There are options for viewing various reports. There are options for editing and creating tax codes.

 

On the Returns tab I can see past returns that have been paid. And I can see the open return that is in progress for this VAT quarter. But there are no options to add a payment here either. Only options to prepare the return or view various options but nothing that will allow me to post a payment.

 

So I am still stuck.

M
MirriamM
July 7, 2022

Hello there, @mr_metal_man.

 

I appreciate you coming back and updating us on the results after following the steps above.

 

To record VAT payment on your QuickBooks Online (QBO) account, you'll have first to file a return. If done, go to the Returns tab to record the payment. 

 

Let me show you how:

  1. Go to the Taxes menu on your QBO account.
  2. Choose the VAT tab.
  3. Select Returns. 
  4. Locate the returns you've paid in the Filed returns section.
  5. Click Record payments from the Action columns.
  6. Enter the VAT payment details.
  7. Click the Save button. 

 

To help you manage VAT in QuickBooks, here are some articles that you can visit:

 

I'll be right here to help if you need anything else. Enjoy the rest of your day, @mr_metal_man.

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