PAYE and salary accounting 1-0-1


• I regularly report a “salary payment” via the HMRC BPT-RTI tool, and get numbers on gross, net, NIC etc from the reporting log

• I also make drawings from the current account into my personal account to top this up as needed as I am using my personal account for expenses, which I then “claim” back from the company

• I import the company bank statement into Quickfile and get a record of all payments made via the current account.


• 1. When I now need to “assign” the payments, some of the amounts will be “salary” and some of the amount will be “expenses refunds” but in the “assign” dialogue there is no option to divide the payment into bits. How should I deal with this? Pay it all into working down the directors loan account balance? But then I don’t keep track of the “salary” paid and reported via the RTI tool. Also at some point I will need to convert some of the “Directors Loan” into a salary anyway or a dividend. What is the easiest set-up?

• 2. All the information in the RTI tool would be great if I could capture, so I know how much I will need to pay to HMRC for PAYE. What is the proposed “step-by-step” process? i.e. (1) “Take the RTI log” and submit it to the “Receipts Hub” (2) Create a … etc.

I hope these are simple questions which many more users are struggling with for the most effective approach!

  1. Tag all payments (salary and/or expenses) as a transfer from the Business Account to the Director’s Loan Account (DLA).

  2. Enter all expenses incurred on behalf of the business by either raising a purchase invoice and then logging the payment as being made from the DLA or go to the DLA and click ‘Input New Transactions’ to enter the expenses and then tag.

  3. Finally enter your payroll journals as shown in the posting below:

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