I’ve got a bank payment for end of year PAYE/NIC contribution for 2013-14. The payment is, however, dated on June 2014, so when I tag it as PAYE liability it counts it for 2014-15. How should I do it?
Thanks.
What do you mean “counts for 2014-15”? Paying HMRC for your PAYE liability is just a balance sheet transaction, it shouldn’t affect your P&L for either year. The gross wages and employer’s NI are what appears on P&L, and they are generated by the relevant payroll journals at the time you pay your employees.
Thanks Ian. It’s actually a bank payment of employer’s NIC contribution that was made in June 2014 - my year ends 31 May. So when I tag it, it gets in the P&L of 14-15 when it corresponds to 13-14. Do you know how I can assign another date?
Thanks.
Alex
Hi,
If you are a limited company. You should have a PAYE balance sheet item. (This should be a creditor in your case) This refund should be placed against that code.
If you are a sole trader or partnership then this should not be entered as part of your P&L and should be placed in drawings instead.
Hope that helps.
Kind regards,
Chris