VAT to be paid set up as a supplier

A client would like to see the amount to be paid to HMRC as a supplier account - I have tried to raise an invoice showing the balance to be settled however the system does not appear to let me post an invoice to the VAT liability account - is there a way around this please? thank you

Why do they want to see this on a supplier account? HMRC technically aren’t suppliers. If you post the VAT returns in QuickFile, the VAT liability account will track the balance for you automatically, you can then view this in the Chart of Accounts or you can pull the figure from the Tax Summary.

If you didn’t want to post your VAT returns in QF, then you could also just post a journal.

Hi Glenn, that is how we have always done the VAT previously, same with PAYE/NI, unfortunately they do not always look in the nominal area, and so have missed a few payments to them. A lot of clients are comfortable with customer, suppliers and bank but not so confident looking through the nominal area.

Vote for this feature and get the VAT in there too! Then the liability would be on the home page

I don’t think listing HMRC as a supplier and posting VAT to invoices is the solution. It breaks away from the way QuickFile typically handles VAT, as soon as we do this then the next question will be “Why doesn’t QuickFile create a supplier invoice when a VAT return is filed”. HMRC aren’t suppliers and really VAT liabilities don’t belong on invoices.

I get that having the VAT liability appearing on the dashboard is useful but the way to solve this is to allow users to extend the “Money you owe” and “Money owed to you” calculations based on their own custom nominal codes. That way they can list whatever other liabilities they like on the dashboard, e.g. loans, credit cards, PayPal balances etc.

1 Like

We agree with Glenn.
We have this situation with Quickbooks where HMRC shows as a suppliers with different accounts with both VAT and PAYE and it can become confusing. HMRC are not suppliers but the liability will be showing in the balance sheet. Creating an additional supplier may in the long run cause aggravation with the balance sheet with VAT showing both in VAT liability and Creditor Control Account.

not sure I am quite following you - both creditors and VAT liability are in exactly the same section of the accounts “Liability” within section 2xxx code which is of course part of the balance sheet. HMRC are equal to other creditors as quoted changes of 2002 “The insolvency regime changed in 2002 under the Enterprise Act, when HMRC removed their right as a preferential creditor in the pecking order and ranked alongside unsecured creditors.” It was my client request and therefore I am trying to ensure the best for my client which is ensuring that they will not miss a payment being issued to HMRC for what ever reason. In doing so I was also be clearing the VAT liability account and transferring the balance to the creditor account. I have since found a get around by creating a dummy bank account where the customer can see a payment is required.

@donnacbk Is your client open to the idea of setting up a DirectDebit with HMRC? If it’s a case of ensuring no payments will be missed, this is probably the simplest solution. I’ve had a DD with HMRC for years now and don’t need to watch out for missed payments.

@donnacbk this may be of interest to you. You can now add additional nominals ledger balances to your dashboard totals. It does require a Power User Subscription though.

This topic was automatically closed after 3 days. New replies are no longer allowed.