I'm new to the forum and wonder if anyone can help with the following. An employee has had a PAYE refund for the last 3 months and now I have to enter the bank payment to HMRC on Sage. I've entered the monthly payroll journal as follows for each of the 3 months
7000 Gross Wage DR 647.00
7006 Employer NI DR 89.29
2210 PAYE DR 23.60
2220 Net Wage CR 592.96
2211 NI(employee & employer) CR 166.93
The total NI liability is £500.78 and the total PAYE refund is £70.80, meaning a payment of £429.98 to HMRC. Normally I apportion the bank payment to 2210 and 2211 in the correct amounts but I don't see how this will work this time. Do I need to enter a journal to make it work - if so what would the entries be?
This isn't going to help your problem, but as HMRC no longer require the amounts to be separated I've just been using 2210 for both PAYE and National Insurance.
Is there any reason you are keeping them separate?
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I agree with Peasie. I don't separate out the PAYE & NI any more. Think that if you grouped them together under 2210 as PAYE & NI Control account, this would solve your problem as you would then have £500.78 (or £500.79 actually if all three months were the same) as a credit entry in the account and £70.80 as a debit entry, leaving a total of £429.98(9) as a credit entry. Then you could credit the bank and debit the PAYE & NI Control.
So Kath could just journal all the NI to the PAYE code and job done. *crosses fingers in the hope of being right* :)
Uncross them....you are correct Sorry, should have said. Dinner was ready and had to finish the post in a hurry! Lol If you debit 2211 NI with £500.78(9) and credit 2210 PAYE with the same amount you will have a net credit in 2210 of £429.98 and then you can do a bank payment to credit bank and debit 2210 PAYE and bob's your uncle
I personally would clear both accounts to NIL with the payment/refund, and start using 2210. Just taken over a job where bookkeeper was using the two accounts, and not checking if anything balanced - has been a nightmare to work out where the discrepancies lay, and why.... and all because having two accounts made it harder to track back through :)
Peasie, your avatar and the comment just go together so well! (chuckle)
Hi, I was surfing the web to look for some info about posting the £2000 NI Employment allowance on Sage Instant and I've noticed my monthly journals look a bit different from the ones suggested in this post.
I have been instructed by my accountant to do the following journals:
DR 7000 with the Taxable amount
CR 2210 with Tax
CR 2210 with Net Ee NI
Cr 2220 with Net Pay
DR 7006 with Net Er NI
Cr 2210 with Net Er NI
It seems I'm not using 2211 at all but don't know why....
How would you post the allowance deduction if you had to use the journals suggested by my accountant, or would you recommend a different way of posting?
As I said above, HMRC no longer require the amounts split up so you no longer really need to use 2211. Just rename the 2210 to reflect the fact it is now also including the Ee NI and Er NI as well as Income Tax.
There is a discussion on another thread when the Directors wages and Employees are kept separate and how to deal with the Employment Allowance - but if it is straightforward I'd just use : DR 2210 (Tax, EE NI, ER NI) CR 7006 (ER NI)
Sorry, should have said. Dinner was ready and had to finish the post in a hurry! Lol If you debit 2211 NI with £500.78(9) and credit 2210 PAYE with the same amount you will have a net credit in 2210 of £429.98 and then you can do a bank payment to credit bank and debit 2210 PAYE and bob's your uncle 
