Opening balances for VAT paid in previous quarter

Accounting
1

My client has transferred their accounts from a previous concern to me
In order to balance the bank statement I have payment for a VAT return for the last quarter.

Where do I post the other side to payment made by the bank? please

2

The trial balance or closing balance sheet you got from their previous accounts should have that liability on the balance sheet somewhere already (for a QuickFile VAT return it would be a credit on the “VAT Liability” nominal), so you would tag the bank payment to the same nominal to cancel it out.

1 Like
3

Hi Ian
Thank you very much for your swift response

4

If it is indeed on the “VAT Liability” nominal then you can tag as “tax payment to HMRC” and select “VAT”. If it’s somewhere else then you’d have to use “something else not on this list”.