First VAT Return: How to Account for Refund in QB

Accounting
1

Hello,

We are due to file our first VAT return tomorrow and quickfile agrees with my figures that we should receive a refund from HMRC as we have paid more vat on purchases then we have charged on sales. I assume that HRMC will at some point credit this amount into our nominated bank account. When it arrives, how do I account for it in quickfile? Many thanks

2

This forum is for QuickFile, not QuickBooks…

The way it works in QuickFile when you submit your VAT return this creates a journal which puts the final box 5 amount in the “VAT liability” nominal on your balance sheet - this will be a credit entry if you owe HMRC and a debit entry if they owe you.

When the payment is taken or the refund arrives you tag it as “tax payment to HMRC” or “… refund from …” as appropriate, and it will offset against this same balance sheet nominal.

3

that was auto correct, but thanks for the info.

Cheers

4

This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.