Recording a net payment due to HMRC

Last modified 07:53, 24 Apr 2017

Overview

This section shows how to record a net payment due to HMRC.

Recording a net payment due to HMRC

In this situation, there is an amount due to HMRC which is greater than the repayment due from them:

File:test/insolvency/150_13+VAT+Wizard/070_Record+a+net+payment+due+to+HMRC/VATPayDue1.png

As the net amount is a payment to HMRC, we will create a new Account Payable for £44.80.  As before, both the output and input VAT amounts should be recorded:

1.    Go to Transactions > New Account Payable:

File:test/insolvency/150_13+VAT+Wizard/070_Record+a+net+payment+due+to+HMRC/VATPayDue2.png

2.    Enter the transaction details:

Field

Value

Customer Name

HM Revenue and Customs

Memo

VAT for the period xxx to xxx

For the VAT due, enter a positive number:

Account

VAT Control: VAT Paid (Received)

Tax Code

<blank>

Net

618.08

Tax

0.00

Total

608.08

For the VAT payable, enter a negative amount:

Account

VAT Control: VAT Paid (Received)

Tax Code

<blank>

Net

-573.28

Tax

0.00

Total

-573.28

Your screen should resemble the one shown below:

File:test/insolvency/150_13+VAT+Wizard/070_Record+a+net+payment+due+to+HMRC/VATPayDue3.png

3.    Once the required entries have been made, the net payment can now be paid.

To make the payment, go to Transactions > Make Supplier Payment:

File:test/insolvency/150_13+VAT+Wizard/070_Record+a+net+payment+due+to+HMRC/VATPayDue4.png

4.    Click the Customer drop-down.  The awaited payment from HMRC should be shown:

File:test/insolvency/150_13+VAT+Wizard/070_Record+a+net+payment+due+to+HMRC/VATPayDue5.png

The details of the awaited payment will be shown in the Outstanding Invoices section of the screen.  Select the payment and complete the Memo and Payee Ref fields as required.

Click the Payment by EFT if required and complete the receiving bank’s details as necessary.

5.    The completed screen should resemble the one shown below:

File:test/insolvency/150_13+VAT+Wizard/070_Record+a+net+payment+due+to+HMRC/VATPayDue6.png

6.    Make the payment in the usual way.

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