Recording VAT payments and refunds

Once you’ve successfully created and submitted your VAT Return, to clear your VAT liability you need to record the payment of VAT to HMRC or, if applicable, the amount of VAT you’ve reclaimed. When you record the amount you’ve paid or reclaimed against the VAT Return, this automatically creates the bank payment or receipt.

You can only record a payment or reclaim of VAT after the VAT Return has been marked as submitted. The amount you need to pay or reclaim appears on the relevant HMRC contact record.

To record a payment of VAT liability

  • 1. Reporting > VAT Returns > click the VAT Return you want to pay.
  • 2. Pay > complete the following information:
Amount * The amount due to HMRC automatically appears. If necessary, you can pay less than this amount but you can’t pay more.
Date * Enter the date of the payment.
Bank From * Choose the bank account you want to make the payment from.
Reference If required, enter a reference for your records.

* These details are compulsory.

  • 3. Click Save.

You’ve successfully cleared your VAT liability and the VAT Return shows as Paid. If you didn’t pay or reclaim the full amount, it shows as Part paid.

To record a refund of VAT

  • 1. Reporting > VAT Returns > click the VAT Return you want to record the reclaim against.
  • 2. Reclaim > complete the following information:
Amount * The amount due to you from HMRC automatically appears. If necessary, you can reclaim less than this amount but you can’t reclaim more.
Date * Enter the date you received the money from HMRC .
Bank From * Choose the bank account the reclaim of VAT was paid into.
Reference If required, enter a reference for your records.

* These details are compulsory.

  • 3. Click Save.
  • 4. You’ve successfully cleared your VAT liability and the VAT Return shows as Paid. If you didn’t pay or reclaim the full amount, it shows as Part paid.

Let us know what you think...