P.A.Y.E. - am I being thick?!

[QFMathew]

Hi @Director

First of all, I’m not an accountant, but I’ll certainly try to help

Alongside the £198 employee NI, there’s likely to have been an employer’s NI element too.

With payroll, there’s a journal (as you’ve discovered) which moves the balances around on the account to reflect the current position. Until you actually pay HMRC the money, it’s considered a liability. If you pay it before accounting for it, it’ll be an asset.

There’s a guide in our knowledge base which gives you an example of the journal, but this does include quite a few possible options:

Recording payroll

Introduction A common query that comes up on our forums are in regards to recording payroll. How you record it does depend on your setup, but we'll look at both options below. The 2 ways that payroll can be handled within QuickFile are: With a payroll journal Without a payroll journal 1. With a payroll journal The advantage of a payroll journal is that it allows you to record it prior to paying your employees, and it would show as a Liability on your balance sheet report. If you run your o…

I hope that helps, but please let me know if we can help further. We do have some accountants who use this forum who may be more useful than me