Has anyone ever come across advanced funded Maternity pay? I was told by Inland Revenue that I was not entitled to maternity pay through the business as not enough wages showing on end of year accounts and to apply for maternity allowance through job centre. This would have been so much easier being paid direct by Job Centre, but job centre disputed with Inland Revenue and got told entitled to maternity pay after all and to apply for advanced funded maternity pay.
Received a cheque for 1st November 2010 - 5th April 2011 and will get another cheque for 6th April - 31st July 2011.
Does anyone know how I account for this on sage, and our end of year accounts is 31st October 2010 for companies house, so the cheque is paid in but all relates to next financial year?
Thanks in advance for the advise on how to process this.
I have come across this once before, quite a while back
I think on receipt of the cheque you would create a new creditor around the paye area on the balance sheet, so dr bank cr creditor Then on the monthly payroll when you pay the SMP instead of using it to reduce the amount of paye/ni that you pay hmrc you use it to reduce the creditor.
I'm not 100% sure this is correct so am happy to be put right
