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SiloSean
August 22, 2019
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Entering HMRC Employers Allowance without using QB Payroll

  • August 22, 2019
  • 1 reply
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I have been manually recording employee pay records without using QB Payroll, including recording the payments to HRMC for PAYE and NI.  However, I have realised that I need to record the HMRC Employers Allowance and I am not sure where or how to post this.  Has anyone else had this issue and found a solution?

Best answer by SiloSean

Dear John C,

 

Thanks for the reply.  I think I may have solved the issue by looking at the method I used in Sage, which seemed to clear the liabilities account ok.  I will use Journal Entry to transfer the amount from the National Insurance (current liabilities under tax and national insurance) to Employer's NI Contributions (expenses under cost of labour).  As the expense will be an overhead these should clear at the end of our financial year, unlike liabilities that are carried forward to the next year.

 

If this doesn't work I will talk to an accountant.

1 reply

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payment after leaving
August 22, 2019

Hi SiloSean

 

All of our payroll systems automatically calculate the Employees Allowance once it is selected. When the payroll is ran it creates a journal that doesn't include any Employers NI until the £3000 allowance has been reached.Once it has been reached the journal credits a liability account and debits an expense account. When you then pay HMRC the liability due you will have to create an expense choosing the liability account in the category, which will negate the liability generated.

As you are not using any of the payroll systems it would be a case of creating a manual record of how much Employers NI you have generated and then once it has been used start including the figures.

We are not trained accountants and we would ask you to qualify any of the advice given with an accountant.

S
SiloSeanAuthorAnswer
August 22, 2019

Dear John C,

 

Thanks for the reply.  I think I may have solved the issue by looking at the method I used in Sage, which seemed to clear the liabilities account ok.  I will use Journal Entry to transfer the amount from the National Insurance (current liabilities under tax and national insurance) to Employer's NI Contributions (expenses under cost of labour).  As the expense will be an overhead these should clear at the end of our financial year, unlike liabilities that are carried forward to the next year.

 

If this doesn't work I will talk to an accountant.

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