PAYE Interest payment?

[dlamp]

So I think I have figured out how to get PAYE off my balance sheet and into the right place - which is to make two journal entries -
debit account 7001 (gross directors salary) with the employee national insurance, and credit against 2210
debit account 7006 (employers NI) with the employers national insurance, and credit against 2210

(The other account mentioned in posts like this:

Directors Salaries do I need to Journal them?

Thank you so much @FaradayKeynes I now have understanding of this process. Can you take a look at the journal for the month for employee salary below: [image] Did I made it correctly? It is basically the same as for director but instead of 7001 we move to 7000 for Employee salary correct? 7001 for gross directors salarys 7000 for gross Emplyees salary

is 2220 (net wages) but in my case it’s a credit against the directors loan account - is that okay?)

Also - I assume these journal entries should be dated the day of the payroll run? And that I should get the corresponding amounts for the latest payroll run even though I have not yet had to pay the PAYE?

But I have one last item - earlier this year I did not file PAYE in time and got stung with a “nominal” charge upon which I was charged interest - and although the charge was removed the interest was not!

So my first guess is to debit the account 7009 (“gross pay adjustments”).

[FaradayKeynes]

Cr for net wages can go into director account only if it is director wages not other staff salaries.

I would suggest create separate expense for disallowed expenses and tag late payment interest or penalty for late filing etc to that accounts as these types of payments are not tax allowable

[dlamp]

So - I create (for example) a new nominal account say code 7020 call it PAYE late payment interest, and then add it to the list of add back codes in the tax summary page?

[FaradayKeynes]

yes that will do, or simple one nominal Disallowed expenses then you can tag any other disallowed expense to it as well