Hi, we still use a cheque book for most payments. I have created a “cheque account” in bank and mark invoice as paid from here and do a bank transfer back into the Cheque Account once it is cashed.
How do I pay HMRC PAYE/NI? There is no Purchase Invoice to make the payment against.
I know I am missing something obvious … put me out of my misery please.
Hi @WalkerTim
With HMRC, you would select the “Tax payment to HMRC” option when tagging the payment.
After this, you can select the type of tax (e.g. NI, VAT, etc.)
So I can only tag it as paid once the cheque is presented? I can’t “pay it” in real time as I do with other purchase invoices?
If you’re using a bank holding account, you would tag the payment in the holding account. It’s exactly the same as tagging other invoices, you’re just selecting a different option.
Sorry Mathew I meant, can I mark the “bill” as paid when I write the cheque rather than when the cheque clears at the bank? Where do I find the “bill”?
That’s exactly what @QFMathew has just said? When you write the cheque you would add that cheque to the holding account. You tag that transaction as the vat liability. When the cheque clears you create a transfer to your main bank account matching the money out transaction which was your cleared cheque.
There is no “bill” vat liability isn’t a purchase.
I think the key step you’re missing is that you need to use the green “input new transaction” button at the top of the cheque holding account bank statement screen to create an untagged transaction which you can then tag as a tax payment. If you normally only use the holding account to pay for purchases then you may never have needed to create a manual transaction like this before, as “log payment” creates the transactions for you pre-tagged.
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