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BodG
January 12, 2023
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Accounting for PAYE payment plan

  • January 12, 2023
  • 1 reply
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Hi, my company has outstanding PAYE owing for months 4,5 & 6 in 2022.

 

These have been bulked together to be paid off with a payment plan through 2023 as agreed with HMRC.

 

Just looking for advice how to deal with the open invoices showing for 2022. 

Should I use journal to move them together under PAYE creditor account, then match with monthly payments to pay off? At the moment they are showing on invoices (in separate PAYE accounts depending which department employees were in) which are overdue.

 

Thanks in advance

Best answer by GeorgiaC

Hi BodG, thanks for your post - you can create a PAYE liability account in your Chart of Accounts to track this. Once you've created the account, enter a journal entry with the liability account entered on one line, and the default debtors account (you may have this as 'accounts receivable) on separate line(s), with the respective employee entered in the 'name' field. You'll then be able to select the JE under 'outstanding transactions' on the receive payment screen of the invoices. We'd recommend consulting this with your bookkeeper or accountant first, to ensure that this is recorded accurately. 🙂

1 reply

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GeorgiaCAnswer
January 12, 2023

Hi BodG, thanks for your post - you can create a PAYE liability account in your Chart of Accounts to track this. Once you've created the account, enter a journal entry with the liability account entered on one line, and the default debtors account (you may have this as 'accounts receivable) on separate line(s), with the respective employee entered in the 'name' field. You'll then be able to select the JE under 'outstanding transactions' on the receive payment screen of the invoices. We'd recommend consulting this with your bookkeeper or accountant first, to ensure that this is recorded accurately. 🙂

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