Payroll PAYE refund

Accounting
1

Hi
For December I processed nil pay - which resulted in a PAYE tax refund.

I can’t figure out how to post this in quickfile. At the moment the Gross Directors Pay is correct, it’s only the overpaid tax amount that needs posting.

Normally I post the following payroll journals (example numbers not actual):

PAYE journal
Dr 7001 Director PAYE £37
Dr Employers NI £41
Cr 2210 PAYE £78

When the net pay is paid - i just tag it and it posts to Directors pay. So directors pay is correct.

With the tax refund it’s owed to the employee so was set up as a payment. No other journals have been posted. Can someone advise what the entries are? If I tag it as directors pay, directors pay is higher than it should by by that amount.,
Thanks

2

Hi @justbreve

I think your accountant may be best placed to advise on any entries that need to be entered.

If it’s just a tax refund payment coming to you from HMRC, you can tag this as a tax refund directly from the bank account.

3

@QFMathew Thanks - It’s ok - I figured it out!

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