tax refund
Hi
I have overpaid the tax dept. They have taken my last BAS payment from this overpayment.
Then credited me with the remainder. How do I enter this into MYOB AccountRight?
Regards Lindy
Forum Discussion
4 Replies
This is why you should have a liability account called ATO Integrated Client Account (set as credit card type). When uyou do your BAS you should spend money or receive money (depending on whether owing or refund due), allocate to GST collected, GST paid, PAYGW and PAYGI (if any, which should be an asset account for prepaid business income tax). Then when the money due is paid or received you will record that from/to bank and allocate to the ATO ICA liability account.
Especilly useful to have this liability account set up if you ever need to make a payment plan with the ATO, which you then would reconcile like you do with cedit card and bank account statements.
DO NOT process it as a purchase or sale as some novice bookkeepers do, it is not a TRADE creditor or debtor.
Agree with Julie best to use the ICA.
Business Owners should register with ATO Online (previously called the Business Portal).
It is important to reconcile every Balance Sheet Account when preparing a BAS.
Duncan
Hi Wilfords,
Thanks for sharing! It looks like things have gotten a bit creative with your tax situation—credits, payments, and overpayments all in the mix! While we’d love to help, when it comes to making sure everything’s spot-on with your BAS and tax accounts, it’s best to check in with your accountant. They’re the real wizards of tax magic and can guide you on how to record this correctly in MYOB.
Regards,
EarlThis is why you should have a liability account called ATO Integrated Client Account (set as credit card type). When uyou do your BAS you should spend money or receive money (depending on whether owing or refund due), allocate to GST collected, GST paid, PAYGW and PAYGI (if any, which should be an asset account for prepaid business income tax). Then when the money due is paid or received you will record that from/to bank and allocate to the ATO ICA liability account.
Especilly useful to have this liability account set up if you ever need to make a payment plan with the ATO, which you then would reconcile like you do with cedit card and bank account statements.
DO NOT process it as a purchase or sale as some novice bookkeepers do, it is not a TRADE creditor or debtor.
