Journals for late Employer NI payment?

[DanCom]

So I’m bringing my one-man-limited-company books and general business records up to date after a long time away (caused by becoming employed, however I have kept the company alive for intermittent part-time work - very common at my employer apparently)

Now it turns out I missed two payments of Employer NI contribs to HMRC. Basic PAYE Tools told me the amount and I have already sent two separate payments to HMRC, so that is all now square… unless they choose to nobble me with late fees… but anyway. I have paid what I now know I owe.

However, I don’t know how to reflect this in Quickfile - any advice for a novice?

• Both the wage payment and the late NI are in the same accounting year.
• This is the first time Basic PAYE Tools has asked me to pay ER contributions, probably because the company earnings were below a limit, but that’s a separate issue!
• Since I have not previously been asked for ER contrinutions, I have been doing my wages like this:

Create a new journal entry in Quickfile
1200 - Net Salary - (nothing) - Credit of my pay after deductions
1200 - HMRC PAYE - (nothing) - Credit of total payments to HMRC, previously Employee only!
7001 - Directors Salary - Debit of my pay before deductions - (nothing)

So credit and debit columns match.

I have already gathered that, now I am being asked for Employer as well as Employee contributions, a) the HMRC PAYE credit will cover both of those added together and b) I will add a second debit entry to 7006 - Employers NI - for that additional amount. Fine, I follow that… but previously I’ve paid everything on the same day!

Given that months have passed, I take it my journals need to reflect that. Do I create a new journal called something like “back payments” with a credit to HMRC and a 7006 debit for the amount - creating a journal not linked to a wage payment?

[ian_roberts]

I’d still do the 7006 journal entry on the date that the expense was incurred (when you ran the relevant payroll), but rather than putting the credit side of the journal directly on 1200 (bank account), put it on the “PAYE” balance sheet account. Then when you paid HMRC tag the transaction(s) as PAYE tax payment to HMRC and QuickFile will create debits on that same balance sheet account. As long as the total payments from your bank eventually add up to the total liabilities from the journal then it’ll balance out to zero.

[DanCom]

That makes sense - then the HMRC entries in my books will map to my company entries in HMRC’s books, sort of thing, while still reflecting my late payment. Cheers.