Furlough payment from HMRC for employees

Accounting
1

Can anyone help please, when the payment comes through from HMRC for employees payment claim - is it logged as a paye liability? Also when logging the NIC and pension claim.

Thanks

2

Hi Claire,

We’ll be posting an explainer on our blog later today. I will let you know once it’s live.

3

We’re just making a few final checks, but we should have the guide ready by tomorrow morning.

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4

Could you make sure you explain what people do if they have either already paid staff. Or if they haven’t paid staff when the money comes through. I’m guessing depending on the above how you initially account for it will differ and I know of a few with cash flow issues who haven’t paid their staff before they receive the jrs payment.

5

Wages should be recorded as usual and money coming in is taxable income

2 Likes
6

We’ve now posted some further guidance here:

Payroll processing for furloughed employees due to COVID-19