Recording VAT payments and refunds

In Sage One, when you create a VAT Return, the total amount of VAT that you need to pay or reclaim appears as an invoice. If you need to make a VAT payment to HMRC, this appears as a purchase invoice. If you’re due a VAT refund from HMRC, this appears as a sales invoice.

To record the payment of VAT to HMRC

  • 1. Expenses > Purchase Invoices.
  • 2. Click the HMRC invoice you want to record the payment against.

The name appears as HMRC Payments and the reference shows as VAT Return Invoice. If you want to print a copy of the invoice, click Print. You can then print the invoice from your Internet browser menu.

  • 3. Record Payment > complete the following information:
Amount Paid * The amount of VAT due from your VAT Return appears. If for any reason you’re not paying the full amount to HMRC, you can reduce this value but you can’t pay more than the total amount of the invoice.
Date * Enter the date of your payment.
Paid From * Choose the bank account you want to make the payment from.
Ref/Chq Number If necessary, enter a reference or cheque number.

* These details are compulsory.

  • 4. Click Save.

You’ve now recorded the VAT payment. If you paid the full amount, the payment status changes to Paid. If you made a partial payment, the payment status changes to Part Paid. The paid status also appears against the VAT Return in more > VAT Returns.

To record a refund of VAT from HMRC

  • 1. Sales > Sales Invoices.
  • 2. Click the HMRC invoice you want to record a refund against.

The name shows as HMRC Reclaimed. If you want to print a copy of the invoice, click Print. You can then print the invoice from your Internet browser menu.

  • 3. Record Payment > complete the following information:
Amount Paid * The amount of VAT you can reclaim from your VAT Return appears. If for any reason you haven’t received the full amount of the refund from HMRC, you can reduce this value but you can’t record a refund for more than the total amount of the invoice.
Date * Enter the date you received the refund.
Paid To * Choose the bank account you want to pay the refund into.
Tick if Cheque If you receive the refund as a cheque, select this check box.
Ref/Chq Number If necessary, enter a reference or cheque number.

* These details are compulsory.

  • 4. Click Save.

You’ve now recorded the VAT refund. If you received the full amount from HMRC, the payment status changes to Paid. If you received a partial refund, the payment status changes to Part Paid. The paid status also appears against the VAT Return in more > VAT Returns.

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