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R
rgh
October 25, 2023
Question

VAT payment and credit card fee

  • October 25, 2023
  • 1 reply
  • 0 views

Hi

 

Can anyone help - when we pay our quarterly VAT bill we have to do it by company credit card which attracts a transaction fee - when we split the payment when it arrives in the banking the fee is ending up in the VAT Suspense Account which is now incorrect on the balance sheet.

 

Can anyone tell us how to manage splitting the VAT payment from the credit card fee when the payment comes down from the bank and how to record it?

 

Thanks

1 reply

G
GeorgiaC
October 25, 2023

Hi rgh, thanks for posting on the Community

 

In this scenario, you would record the VAT payment and transaction fee separately. 

 

First, record the payment by navigating to Taxes > VAT > Select the drop-down beside the VAT return > Record payment. Here, select the CC account you've used to pay HMRC, enter the payment date and amount (not including the fee) in the appropriate fields and save. 
 

If you've already recorded the VAT payment for the full amount (VAT payment + CC fee) you can delete this by locating the transaction in the VAT suspense account, or go to the Search icon > Advanced search > Set the drop-down to VAT Payments > Search. 

To record the fee, create an expense (+ New > Expense) with the CC selected as the payment account, the fee account selected in Category and the fee amount. 

If you're unable to find a match to both transactions when selecting find match, exclude the payment from the for review bank feed (tick the check-box > exclude). 

R
rghAuthor
November 2, 2023

Hi Georgia

 

We've tried to do this but it still doesn't seem to sort the issue properly.  Can we do a screen share with you - the reason I ask this is because last time we contacted Online Chat about this they couldn't understand what we meant.

 

 

G
GeorgiaC
November 2, 2023

Hi rgh, thanks for getting back to me here. 

 

We don't have access to the Smart Look software to set up a screen share on the Community. Please call our support team on 0808 234 5337 - we have a specialist VAT line with agents who will be able to handle your query. This line is open Mon - Fri, 8 am - 7pm, free from UK mobile & landlines. 

 

Alternatively, you can get back to us below with screenshots demonstrating the issue (making sure to cover any sensitive info) so that we can help further. 🙂 

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