Advanced SMP

[S.S]

Hi,

How to account for Advanced SMP Money received from HMRC please?

I have already tagged the wages from the bank so how can I show the SMP money being allocated to the employees pay?

Thank you.

[QFSteve]

Hello @S.S
How do you process your payroll at present? It’s usually done as a journal if there are several parts to the pay (e.g. national insurance, pension contribution, SMP, etc.). This may be produced by your payroll software.

You would typically tag the advanced payment from HMRC to 7011, and then when the journal is produced, it’s included as part of that to reduce the balance.

I have included a link to an example payroll journal from our knowledge base, however, it doesn’t include an example of maternity pay, unfortunately.

https://support.quickfile.co.uk/t/recording-payroll/16003

[S.S]

Hi Steve,

Sorry I have only just seen your post. Thank you for your swift response.

I tagged the Advanced SMP to 7011, however part of the advanced payment is only used towards following year salary.

Where do I allocate the remainder of this money that hasn’t been used in this year?
I assume it should go on balance sheet, under what shall I put this?

Thank you.

[QFSteve]

Hello @S.S

If you need to move a payroll value to the balance sheet you would use a code in the 22** range next to the other payroll codes and move the value across using a journal to the balance sheet using a journal.

You would have to create a code (see link below).
https://support.quickfile.co.uk/t/adding-a-new-nominal-account/8882

Please be aware I am not registered accountant or bookkeeper and It may be worth seeking advice before processing in this way.

If you don’t have an accountant, we have a panel of accountants to choose from, for more information, please see the following link:

Find a QuickFile Accountant

[S.S]

HI Steve,

That’s helpful.

Thank you.