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Post Info TOPIC: Furlough Payments
KAZ


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Furlough Payments


Hi all, I hope you are keeping well and safe in these unpredictable times.

Has anyone posted Furlough payments yet through SAGE? What are thoughts on whether to post payment directly to Gross Wages or to open a new Code called Furlough Payments?



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Master Book-keeper

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Hi Karen
Only use separate n/c if you want to track it separately.

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Joanne

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 (and by that I dont mean with HMRC)

KAZ


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Thanks Joanne, that was my thought too. Stay safe!

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Master Book-keeper

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You too.

Hopefully we will see you around soon.

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Joanne

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 (and by that I dont mean with HMRC)



Master Book-keeper

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Posts: 8593
Date:

Hi
Ive changed my mind about this after a bitof reading up on grants.

The furlough grant is recognised as income for CT purposes so should really be credited to an income account - just pop this to misc income or re-style an account to show as grant income.

Of course, the expenses will still be the usual allowables, but at least its in the right place for reporting purposes doing it this way.

I dont believe the furlough grant comes under the heading of state aid unlike eg the SBGF or FHLGF, so worth keeping separate from these grant funds as separate monitoring of those needs to be carefully kept.

On that latter score - now the NI employment grant is classed as state aid, that surely should be kept in the same way.

Thoughts anyone?

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Joanne

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 (and by that I dont mean with HMRC)



Master Book-keeper

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Posts: 3468
Date:

Cheshire wrote:

I dont believe the furlough grant comes under the heading of state aid unlike eg the SBGF or FHLGF, so worth keeping separate from these grant funds as separate monitoring of those needs to be carefully kept.

On that latter score - now the NI employment grant is classed as state aid, that surely should be kept in the same way.

Thoughts anyone?


Careful monitoring in what way Joanne? I understood that the SBGF was yours to do with whatever you wanted, unless you mean in regards to the max that can be claimed.

I'm surprised that the furlough doesn't come under state aid, as that is exactly what it is, even more so than SBGF, the Government is paying firms so they don't make staff redundant. Even the bounce back loan is classed as state aid.



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John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

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Last I heard it didnt, but some stuff falls under exemption, some under the temporary framework, but Ive not been able to do much reading on that score in the week or so. Problem is the information is changing on a daily basis. I reckon a lot of businesses have not given it a seconds thought, probably havent even realised that the NI allowance comes under the de-minimus 3 year cap figure. I certainly already have had to check it in the past for an existing client, although they are now into a new 3 year period so hopefully all will be well. Its just another thing on my 'to do' list.

__________________

Joanne

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 (and by that I dont mean with HMRC)

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