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T
tworkshops
January 5, 2023
Question

Recording partial VAT payments

  • January 5, 2023
  • 1 reply
  • 0 views

I have made a few partial payments towards our VAT account. These payments are showing in my bank feed but I need to match these to the VAT account to mark them as paid. Can someone advise on how I can do this accurately please? I should also note that one of the payments had a fee on it so it will be showing more that what is outstanding on the VAT account.

1 reply

paul72
paul72
January 5, 2023

Hi @tworkshops 

 

Similar questions arose last year & year before - with Covid VAT extensions.  I was going to say use the search - but I've tried & can't find them either!

 

VAT Payments/Refunds are different to standard payments in QBO - they must be done via the VAT Record Payment/Refund function & can't be edited after they're entered.

https://quickbooks.intuit.com/learn-support/en-uk/help-article/pay-sales-taxes/recording-vat-payment-refund-video/L4b0oq7D0_GB_en_GB?uid=lcixpgn8

 

However, you can record partial payments.

Just keep going back & enter each payment until the VAT debt is cleared.

These payments will then match against your bank feed.

 

DO NOT ENTER THE FEE - you will have to enter this as a separate payment in QBO & match the two payments against the one bank debit.

 

Hope this helps.

T
tworkshopsAuthor
January 6, 2023

Thank you for your reply! My bank feed is showing £30018.00 (£30k payment towards VAT plus £18.00 for the fee) how do I separate these payments so I can get this to reconcile?

paul72
paul72
January 6, 2023

Hi @tworkshops 

 

You'll have to enter the £30k via the VAT Payment screen - this will clear the VAT Return(s).

Notice - if the payment is to cover more than one Return, you'll have to break it down into separate payments.  (Although the QBO VAT Payment screen can accommodate multiple payments per return, it cannot clear multiple returns against one payment.)

 

Then you'll have to make a payment for the £18.00 fee (as a Cheque or an Expense from the bank account).

Categorise this as a Fee (HMRC Fee or Bank Charge) or a Fine or Interest - I'm not sure what it's for.

 

As above, I don't use bank feed matching so am a bit hazy on the last step.

Finally, reconcile the two (or more) payments against the £30018 on your bank feed.  I guess this will have to be done manually (via the unmatched route?) as QBO does not attempt to do this.

 

Hope this helps.

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