Refund an expense

When a supplier refunds something you've already recorded as an expense, explain the incoming bank transaction
against that expense (or record it as a payment in and pick the expense from Refund). BusyBee Hub links the two,
and the refund is shown on the expense itself.

A refund reverses the expense's own share, not the full amount

An expense is only ever partly deductible when it wasn't 100% business use, wasn't VAT-reclaimable, or isn't an
allowable cost at all (client entertainment, for example). A refund of it reverses exactly that same share:

- a £120 expense at 50% business use contributes £50 to your deductible costs; refunding it in full removes £50, not
£120;
- refunding a disallowable expense (client entertainment, fines) never touches your allowable costs, because the
original expense never counted there either;
- refunding part of an equipment purchase on accruals reduces your capital purchases, the same place the purchase
itself was counted, rather than a profit-and-loss category.

This keeps your estimate and your MTD updates exactly where they'd be if you'd never claimed the refunded part —
neither over- nor under-stating what the purchase actually cost you.

Refunding more than once, or refunding a landlord expense

You can refund the same expense more than once (a partial refund followed by another), and BusyBee Hub keeps a
running total so the refunds together can never exceed what you originally paid. A refund on a rental property's
expense stays with that property, even if you don't pick one again when explaining the refund — it always follows
the expense it refunds.

Deleting a refunded expense

An expense can't be deleted while a refund still points to it — unexplain the refund first (from the bank
transaction it came from), then delete the expense.

See also Record a payment for outgoing money that never had a bill in the first place.