PAYE payments showing as an asset

Hi I need help
I am running LTD in QuickFile, very simple business…
We have 2 directors only on paye ( we do paye in other software). When we do a payments regarding payslips so amount is with dedication of NI and tax is shows in current account and we tagging that is director sallary. We didn’t create any other jurnal. We do
Payments from current account for tax and NI separate and now is a question when this’s payments is on our current account and I tagged them is payments to HMRC paye liability is then on my balance on debit side…when I actually don’t have this money they should be my costs… help me please

Hi @EliteFinancial

The payments will appear as an asset unless the payroll journal is put in place to separate the payroll values out to the correct nominals.

The salary transfer you would have tagged is only the net wages, with the NI and other deductions forming the gross pay.

You can find an example of this here: Recording payroll

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