I’m entering January’s purchases (& sales).
I made a payment to HMRC mid Jan. There doesn’t appear to be a Nominal Account to allocate the payment to.
Do I create a new supplier, i.e. HMRC VAT or a new nominal account?
Do you mean you paid off the liability from your previous VAT return, or that you paid HMRC direct for some import VAT?
If it’s the VAT return liability then just tag the transaction as a tax payment and select the VAT liability option. This should net off against the liability sitting on your balance sheet from when you did the return.
If it’s import VAT then yes, treat it as a supplier and create a purchase as appropriate (which may be zero net and all VAT) as per the certificate they send you, and it’ll reclaim as normal on your next return.
Yes it was liability from VAT period ended 31/12/19.
As a novice book keeper I don’t fully understand your second paragraph but I think you meant:
"
?
I thought this was automagically filled from purchases and sales along with
Hi @fopetesl
When you view the payment in your bank account and go to tag it, select Tax Payment to HMRC
It will then ask what kind of payment it is for. In your case, select VAT and then save.
This will then add the payment to the correct nominal code.
I hope this helps, but if you have any further questions, please don’t hesitate to ask.
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Thank you. Perfect.
That also goes some way in explaining “Tagged” and “Tag Me!” which wasn’t answered in an earlier question.
Do I raise another subject to explore this further?
The way the VAT system works in QuickFile:
- when you create a sales invoice the VAT element goes to 2200
- when you create a purchase invoice the VAT element goes to 2201
- when you complete a VAT return in QuickFile it creates a journal which reverses the 2200 and 2201 entries for the items included in the return, and puts the balance (sales vat collected minus purchase VAT paid) as a credit (liability) on 2202 (or a debit - asset - if you paid more purchase VAT than you collected in sales, and HMRC owes you a refund)
- when you tag “tax payment to HMRC” -> “VAT Liability” that creates a debit on 2202 that cancels out the liability from the return (or a credit if it’s a tax refund).
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Hi @fopetesl
For more information on tagging your bank transactions, please check out the following link: Tagging your bank transactions
If you feel as though this doesn’t answer all of your questions, then please feel free to start a new topic.
Thank you, nicely explained.
Now it raises a concern that I’ve posted a bank transaction for VAT liability paid which is allocated to 2202.
However there are, or will be, transactions on both 2200 and 2201 at the end of current VAT period, end April.
Will the payment in 2202 not then throw an imbalance at period end?
The payment on 2202 is clearing the liability from your previous VAT return, the entries on 2200 and 2201 will be your sales and purchases from the current period (which will in turn move over to 2202 when you do the next VAT return).
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i.e. 2202 gets over written at return point?
Nothing gets “over written”. When you do a VAT return it adds a credit to 2202 on the date of the return (last day of the return period), when you pay the VAT to HMRC is adds a debit to 2202 on the date of the payment. If you looked at your balance sheet for a date between the return date and the payment date you’d see a “VAT liability” entry in the current liabilities section, if you looked after the payment date you wouldn’t as the balance on that nominal would be zero.
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