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Helen Ball

How to record a VAT payment to HMRC

SOLVED
Posted By

Hi,

I wonder if someone could please help me regarding how to record a bank payment to HMRC.  We have just migrated from TAS first books and all I had to do when sending or receiving a payment from HMRC was to select the tab either VAT payment in or out.

If I simply record this through the bank payments I do not know what NC to use as I have not had to select a code in the past.  It is for VAT on Sales.

Thanks oi advance,

Helen.

  • 0
    SUGGESTED

    Hi Helen,

    Thanks for using Sage City.

    Before you record your VAT payment to HMRC in Sage 50cloud Accounts, you should record the VAT transfer. This transfers the values from the sales and purchase tax control accounts into your VAT liability.

    1. Complete the VAT transfer area as follows:

    Date

    Enter the date for the VAT Transfer.

    Sales Tax Amount

    This is the amount from Box 1 on the VAT Return, you can amend this if required.

    Purchase Tax Amount

    This is the amount from Box 4 minus the amount from Box 2 on the VAT Return, you can amend this if required.


    2. Click Post Journal.

    You can then post a bank payment (BP) to the VAT Liability nominal code (2202 by default) to record the payment to HMRC.

    If this has answered your question please click More > Verify Answer.

    Regards,

    Paul

    Sage UKI

  • 0 in reply to Paul Morgan

    Hi Paul,

    Thanks for taking the time to reply, you will have to excuse me being a bit thick, I am trying to get my head around this! We migrated our data over from TAS after the last VAT return, but the VAT payment from that quarter was not taken from the bank account until after we had migrated, so I have to post a bank payment  from my current a/c.  Would we still have to do what you suggest above?

    I don't think I explained the whole scenario above very well!!

  • +1 in reply to Helen Ball
    verified answer

    Hi Helen

    Just follow the second part of Paul's answer: post a bank payment to the VAT Liability account (probably 2202), using tax code T9.  Presumably you have (or will have) opening balances to put the liability there in the first place, but you may need to ask your accountant for those at a later date.

  • 0 in reply to Anita Harper

    Hi Anita,

    Thank you for that.

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