Spliting payments made or received in bank tagging/ spliting tax refunds

Hi Glenn

I tried to split a VAT refund received from HMRC. The amount involved VAT refund and additional interest from HMRC.
When tagging, Under the option ‘tax refund from HMRC’ the whole amount had to go to VAT.

Is it possible to add option for Interest on refund received from HMRC, which should ideally go under other income?

On the same token, we paid a supplier for two services in a single payment.
When tagging, we could only choose one category of expense to allocate it to, and also no option to split the amount.

As a alternative solution, i first raise a new purchase invoice for the two different expenses under the supplier, and then allocated the payment to this purchase invoice.

Is there possibility to do this directly when tagging the payment in bank account?

Thanks

Sam

It’s possible, but how common is this scenario? If it’s not something that occurs very often it may be best to handle with a separate journal.

What you would need to do in this scenario is add the invoices separately then from bank tagging you can use the option ‘’ and assign the single payment to the two pre-existing invoices.

Creating multiple invoices with differing categories is beyond the scope of bank tagging as the UI in the popup can get very complex.

Oops I should have read this first :wink:

How would this handled in the VAT statement report, if interest is included in a tax refund/payment then after doing a separate journal as suggested, will it be picked up in the statement?

Thanks

It would appear in the Chart of Accounts, when a VAT return is filed it would insert a debit/credit into nominal code VAT Liability (2202). When you tag the VAT payment/refund from the bank it basically posts the opposing balance to 2202. If the payment is greater then you will accrue a balance in the account, which you would then need to journal out. Sorry, I’m not an accountant so I may have missed a step?

i can see your view, but my whole point is that - why/how would someone (especially non-accountant) need to/know to/would like to journal out something?

The whole point of a good book keeping software is to do these things for you.

Sorry, if i am being harsh - but this is how i see it.

And tax refunds/penalties and any interest on it is a very common occurrence with HMRC!

Thanks

The idea of being able to partition off interest payments in tax rebates has to my knowledge never been raised before on this forum. You must appreciate that everybody comes to us with a specific set of requirements and depending on what they have used previously expect things to work in a particular way. When features are requested multiple times and there’s real consensus that’s basically how we prioritise our work.

I’m not saying it’s a bad idea, if it took one hour to implement, then sure we’d do it. I know as a software developer that it can take 5 minutes to suggest a feature and 5 days to implement it. For that reason we’re always going to have an overhead of ideas and therefore need to be very selective about what features we take up.

i agree Glenn, and you are doing a fantastic job with quickfile
It will be great if this feature can be implemented. Plus i am surprised that this particular request has not popped up.

Thanks

Best Regards
Sam