Over paid PAYE - how to account for returned amount

Accounting
1

So I over paid PAYE classified as Net wages using the option when tagging. I have sent back the over paid amount to my bank so wondering if I simply tag it as “Tax refund from HMRC”?

2

Hi @ithound

If the original payment was tagged using the “Tax payment to HMRC” option, then tagging it as a “Refund from HMRC” should balance it out. Both would post to/from the same nominal code.

I would just note the figures on the balance sheet before and after tagging it to make sure it’s been accounted correctly.

3

Thank you - makes sense - how do I see the transactions in the balance sheet?

4

Access the balance sheet by going to Reports >> Balance Sheet, find the nominal you wish to view and click the magnify glass:

975×126 7.52 KB