Hi. Not sure what I am doing, but something seems to be wrong. I do my payroll via another supplier, so enter the payroll via a journal. I split the Gross and Net wages out to the relevant codes, and also the NIC, Student Loan and PAYE. The issue arises when I pay HMRC the amount of taxes due each month. This payment consists of PAYE, SL, & NIC. However when I come to mark the payment off on the bank statement, I allocate as a Tax payment, and on the drop down select PAYE. This allocates the payment to the PAYE account, but shouldn’t I need to allocate some of it to NIC and SL as well? Currently my PAYE account shows a balance, as does the NIC and SL accounts. They offset each other, but in my opinion the accounts should be at zero once the payment has been made.
You don’t need to split the income tax, NI and SL elements in your payroll journal - all three are part of your liability under the Pay As You Earn system so just put them all on the same PAYE nominal which will then zero out when you pay HMRC.
ok thanks. That makes more sense. It’s just the example on the FAQ section tells you to slpit it out, but I won’t in future. cheers
We’ve made a note to take a look at the guidance.
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