VAT Direct Debit does not match return

Question

I am trying to reconcile the VAT DD with the VAT return posting in Bank Feeds. HMRC have applied a credit of 55p to our account relating to a historic transaction, so taken a DD for 55p less than the return value. 
 What entry should I make to balance the amounts please?

Anita Harper · Accepted Answer

Post a bank payment for the DD at the amount you expect to pay for the current return, then a bank receipt for 55p, coded to other income. Give both transactions the same clear reference and date, then match them off together when you do your bank rec.

Sage 50 Accounts

VAT Direct Debit does not match return

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