What do you do with/how do you mark bank movements that are IR35 ad wont be uncluded in VAT

Hello @oli3,

Thank you for posting here in the Community. I'm here to share some details about applying IR35 legislation rules in QuickBooks Online.

The rule applies to a contractor/worker who provides services through an intermediary but is classed as an employee. There's an option to add them as a Deemed Employee instead of a normal one in QuickBooks.

You can select the IR35 legislation applies option under the Tax and NI details page when viewing the employee profile. For the detailed steps, here's how:

1. On the left navigation bar, click Payroll.
2. Click the employee name.
3. Under Employee Settings, press Tax and NI Details.
4. Below the IR35 section, select if IR35 legislation applies.

Also, I recommend setting up a separate pay schedule to create pay runs for deemed employees. This way, you can exclude VAT and avoid including them in submitting RTI.

For additional reference, I've attached a link you can visit to view useful tips about Off-payroll working rules (IR35): Off-payroll working rules (IR35).

Fill me in if you have additional questions about setting up IR35 in QBO. I'm always here to help. Take care always.