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Post Info TOPIC: How to post a journal for a HMRC PAYE refund...
magikmatt


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How to post a journal for a HMRC PAYE refund...
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Hello.

Please can i get some advice regarding a refund i have received.

This has arrived into the business bank i work for and it is refund from HMRC PAYE. How would i post this Sage Line 50???????

The story goes that an employee was paid a refund from HMRC in which the company paid the refund in his salary then we reclaimed it back from HMRC??????

 



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FoxAccountancyServices


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It goes to 2210 by the sounds of it. You should have a balance for it somewhere? Assuming you are processing your PAYE journals correctly?

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magikmatt


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Hi Michelle.

Our payroll is done by an external payroll company, in which the payslips and summary is sent back to me. One of the employees received on this particular pay date quite a healthy refund which we struggled to pay but did manage so. When i contacted HMRC they advised that any company facing hardship and with a large refund to pay can claim back the amount from HMRC which i did.

But now i come to reconcile the bank statement i really don't know how to post this onto Sage

Hope the above makes sense??

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FoxAccountancyServices


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how are you posting your wage payment and hmrc payments into sage? what codes?

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magikmatt


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7000 Gross Pay             
7006 Employers NI          
7007 Employers Pension 
2210 Income Tax                                     
2210 Ees/Ers Nat Ins                       
2245 Ees/Ers Pension 
2220 Net Pay 
7007 Pension 

 



-- Edited by magikmatt on Wednesday 2nd of December 2015 04:48:19 PM

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FoxAccountancyServices


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The bank payment needs to go to 2210... i think you need to give me the exact journal you posted for the week/month in which the refund was applied to the wage - presumably on this week/month, the refund wiped out any liability?

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FoxAccountancyServices


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Sorry bank refund

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magikmatt


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Hi Michelle.

below are amounts from August which are related to the refund. Hope this helps

Nominal Code Journal Dr Cr
7000 Gross Pay £58,085.38
7006 Employers NI £3,126.96
7007 Employers Pension £297.21
2210 Income Tax £4,443.40
2210 Ees/Ers Nat Ins £5,948.47
2245 Ees/Ers Pension £534.96
2220 Net Pay £50,567.72
7007 Pension £15.00


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matt123


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The refund would just reduce the liability to HMRC so the company wouldn't be paying out any more than normal.

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Matthew
magikmatt


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Hi Matthew.

So when i reconcile the bank statement this payment would i post this as a journal?? if so under which N/C?

thanks

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FoxAccountancyServices


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magikmatt wrote:

Hi Michelle.

below are amounts from August which are related to the refund. Hope this helps

Nominal Code Journal Dr Cr
7000 Gross Pay £58,085.38
7006 Employers NI £3,126.96
7007 Employers Pension £297.21
2210 Income Tax £4,443.40
2210 Ees/Ers Nat Ins £5,948.47
2245 Ees/Ers Pension £534.96
2220 Net Pay £50,567.72
7007 Pension £15.00

 Presumably the £4443.40 is reduced by the tax refund already?  It will appear as a minus figure on that person's line on your report, along with all the other positive figures for other employees??



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FoxAccountancyServices


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Usually, the tax refund reduces the tax to pay over to HMRC, for the other employees... Your "credit" to 2210 for the tax figure suggest other employees have had tax deducted as normal, and that this would have been reduced by the negative figure for the employee in question?  If that's not the case, please explain



-- Edited by FoxAccountancyServices on Wednesday 2nd of December 2015 08:04:21 PM

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matt123


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Is the refund not paid within their normal pay? There should be no need for a journal if your payroll journals are correct.

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Matthew
FoxAccountancyServices


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I'm assuming tax to pay in that month went down, and the employee net pay went up.. So am confused as to how a refund has been granted

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Cheshire


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Might be an idea to post a copy of the report (with any identifying figures blanked out of course) and state the amount of the refund?

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 Joanne 

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Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
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