VAT liabilities in the Balance Sheet

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1

Hi all,

I have had my credit from my VAT return through. The issue is that the VAT liability already shows on the balance sheet as a credit, so when I add the credit to by bank account the amount is actually recorded twice on the balance sheet.

How can I add adjust VAT liabilities at the same time as updating my bank balance? Can I tag the VAT credit to a bank account?

Thanks

2

You need to locate the payment from HMRC on your bank account and tag this using the “Tax Refund from HMRC” option. On the proceeding screen select “VAT” from the drop-down menu.

This will credit the VAT liability account (2202) and balance the debit created when committing the VAT return.

3

Thanks Glenn.

Great software!!

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