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Nicky12
November 27, 2023
Question

Recording an underpayment and overpayment to HMRC over 2 quarters in Taxes: VAT

  • November 27, 2023
  • 1 reply
  • 0 views

I accidently overpaid HMRC for VAT by £3.99 last quarter and so underpaid by the same amount this quarter. I have recorded the actual payment amounts to the returns (rather than the VAT return amounts) and matched in banking so all is reconciled. The latest VAT return however is still showing that I need to ‘record payment’ even though there is £0.00 VAT due.  What else do I need to do to change the status of my return from 'accepted' to 'paid'?

1 reply

K
Kevin_C
November 27, 2023

Thanks for visiting the Community space today, @Nicky12. I appreciate you for sharing a thorough explanation of your query about recording underpayments and overpayments to HMRC. I'd be delighted to lay down the steps for updating the status of your VAT return in QuickBooks Online (QBO).

 

In QBO, the accepted status will usually show up if you've filed your return electronically. To sort this out, we can record a VAT payment amounting £0.00 to change the return status to paid. Here's how:

 

  1. Go to the Taxes menu and select VAT.
  2. Click the ▼dropdown menu next to the return.
  3. Tap Record Payment.
  4. Choose the bank account you've used to pay HMRC.
  5. Enter the payment date and amount (£0.00) in the appropriate fields.
  6. Add a memo if needed.
  7. Hit Save.

 

For more details about this process, see this article: Record a VAT payment or refund in QuickBooks Online.

 

However, if this VAT return status isn't updated after recording the payment, I suggest logging in to your account using a private browser/ incognito mode. Private browsing prevents cookies from being stored on your computer, making it a great place to identify browser issues. Use these keyboard shortcuts:

 

  • Google Chrome: press Ctrl + Shift + N
  • Mozilla Firefox: press Ctrl + Shift + P
  • Safari: press Command + Shift + N

 

Once you're in incognito mode, review your VAT return status. If it is already marked as Paid, clear the cache to start with a clean slate. Otherwise, using other supported browsers can be a good alternative too.

 

Additionally, you can check out this article to learn more about how you can run reports for your VAT liabilities, record or edit VAT payments, and see your payments for different time periods: Manage VAT payments in QuickBooks Online.

 

Feel free to get back to me if you need further assistance with managing your VAT returns in QBO. I’ll be more than happy to work with you again. That's it for now, have a good one!

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