BAS entry and ATO repayments

KGrove

We owe the ATO and are paying it off every month. 

 

The statement I just received has the fuel tax credit as a credit into the account, therefore reducing our overall debt with them. 

 

I've started a liablity account called 'payments to the ATO' to keep track of the repayments and interest. 

 

My question is...how do I record the fuel tax credit and possibly the pay as you go tax withheld and gst as debits into this account. 

 

I appreciate your response. Thank you. 

IanChait

Hi @KGrove 

 

The simplest entry I would suggest is

DR Payments to the ATO

CR Fuel Tax Income 

 

the entries for the rest of the BAS would be

DR GST Collected

CR GST Paid

DR PAYG Withholding

CR Payments to the ATO

 

I would call the account ATO - Integrated Client Account, which is the ATO terminology and then you can reconcile it to the ATO statement if necessary.