I was wondering if anyone could advise how they are booking the new employment allowance in their accounts? I am not sure whether to book the employers NI and tax as normal and then show a miscellaneous income for the employment allowance or show the employers NI as lower to reflect the allowance figure?
I would have thought that since the charge is no longer there then you just post what is payable, so debit employers NI as usual less any allowance to P &L and credit same amount owed as usual to the Balance Sheet.
Thanks for your help, in theory, like you say it just means that the NI cost will be lower to reflect the allowance - I just wasn't sure if that was the best way to show it or whether you should still show the true NI cost on your employee salaries in the accounts
I was thinking about it in respect of weekly paid employees. There seemed little point in making an adjustment every week - make the adjustment when the EPS if filed to claim this allowance - you're not having to check so often that the £2,000 has been reached.
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Is anyone aware of any issues with this allowance if you are on directors cumulative? I am assuming that, next January, when the wages have accumulated past the NIC threshold, the allowance will kick in.
Hi, just to let you know, I called HMRC the other day, and they've just been back onto me. Directors cumulative method doesn't affect the claim, the allowance will kick in, in the later months. I thought that might be the case, but was worried I had missed some small print!
