Entering directors salary, PAYE and NI

[ian_roberts]

My last few replies on this thread from a few days ago lay it all out in more detail:

How to record salary payment for the previous month?

You’re falling into the common trap of treating “PAYE” as a synonym for “income tax”, but it isn’t. The PAYE nominal is where your payday journals should put all liabilities that are settled through Pay-As-You-Earn, which includes income tax, employees’ NI deductions, employer’s NI contributions, student loan repayments, etc. etc. It’s a catch all for all the things that you pay to HMRC as part of your once a month PAYE payment. There may be a separate balance sheet nominal labelled “national …