Hi Grace,

would you like to introduce yourself, tell us a little about your background, which professional body you are with, what stage your studies are at, etc.

The reason for that is that we need to gear any answers at the right level.

In addition, please expand upon point 2. above. What sort of ticket are you talking about? what is the business reasoning behind the purchase? is the purchase purely for business? what sort of business is it?

welcome to the forum,

kind regards,

Shaun

Hi Grace,

I feel that you need to rephrase / explain your questions again (I've already mentioned in my first reply about question 2 but I'm having difficulty understanding question 1 and 3 as well).

I really don't mean that to come accross in a bad way but it does feel as though you are unsure of the question that you should be asking so it's difficult to answer it.

When writing on here you have to explain things assuming that the people that you are talking to have no idea what you are talking about until you have explained it to them completely, clearly and accurately.

For example, in the first question. explain the link to us with the funds provider? Why are they giving you money? Is it a grant? are there terms attached to the money? when is your period end?

On the third question please clarify which method the Payroll outsourcing company is telling you to do.

Who makes the actual payments to the employee's, you or the payroll company? It looks like the Payroll company and everything on your side its simply being expensed (there should be an entry where a bank payment to the payroll company balances the control account).

Again, much more detail please.

For the sedcond question I have already requested further clarification in my first reply.

I (along with many others who have read this but not commented) really would like to help you but we have to be able to understand the exact questions being asked.

Take your time and explain the situation fully.

I'm sure that we can help you out with this as soon as we understand the questions properly.

kindest regards,

Shaun.

Grace2015 wrote:

---

Hi Shaun

Appreciate for your help. I explain the questions again.

I am working as a bookkeeper for a charity who help old people locally. We use Sage line50.

Q1. Is it deferred income or accrued income? What is double entry?

We raise a sales invoice to a grant provider monthly in advance. Our period end is 31st March 2016. For example, I did an invoice of £5000.00 dated 10 December 2015 for the funds in January 2016.

Q2. Do we need to tell HMRC and pay tax and National Insurance on weekly and monthly bus tickets?

We usually pay for staffs mileage when they visit their clients. But for a couple of staff who do not drive, we reimburse their weekly and monthly bus tickets.

---

 Welcome to the forum Grace

i have a couple more questions about your questions ( sorry to do this to you, but want to make sure the answer is specific to you.

q1 - do you actually send the grant people an invoice? Have they asked you to do this? I ask, because I deal with grants all the time for a local charity I am Treasurer for and we have never had to supply an invoice.  The funds just drop in when they arrive. The other question is ...what are the terms if the grant, ie are they repayable in xx months or years if certain conditions are not met?  Therfore requiring the funds to be kept separate from the main or other sources of income?

q2 - do you re-imburse their full bus tickets? Or a portion?

 

 

Hi Grace
Sorry never got back to this - wasnt very well and been bombed with work since.

q1 - I think it would be best to have a look at the specifics of the contracts you are dealing with. Im at a bit of a loss to understand why you would need to be issuing an invoice prior to funds being provided, but it might well be covered in the documentation. Its very difficult to answer without understanding the exact nature of the business/charity and the funding they are getting. Might be worth a phone call to the existing Accountant as well to get their input/advice.

Due to the above Im a bit concerned about VAT tax points - if you dont get the above info correct then you could get the tax point wrong, so its crucial to find out what is going on with the funding.

If you do have to issue the invoice one month prior to be entitled to the funds then I would suggest it would be deferred income. So set your invoice to be posted to a relevantly named liabilities nominal code. When the real entitlement is due you can journal the funds from that nominal into your normal income nominal. There are two ways to do this in sage....Ive just had the similar scenario for deposits - so see this thread, that might help. www.book-keepers.org.uk/t61303148/sale-invoices/

q2 - I would suggest they consider covering only the relevant part of the costs of bus fares moving forward - eg if they have to travel to help the old folk one day out of 7, then refund based on 1/7 of the cost. Otherwise they are getting a benefit - you would need to liaise with the payroll provider to sort this through the payroll.

q3 - Shaun has answered - I wouldnt dare to offer a differing opinion. (Just in case he is watching - which we all know, he always is!) Actually I wouldnt contradict him in this instance as his advice is correct. The payroll company make the payments instead of them going via your Bank account but there still needs to be something to show the various liabilities.
HTH

Cheshire wrote:

---

q3 - Shaun has answered - I wouldnt dare to offer a differing opinion. (Just in case he is watching - which we all know, he always is!)

---

Lol Joanne,

Actually I've been totally innundated for a few days so besides keeping a weather eye on the site to make sure those naughty SEO miscreants don't crawl out of the woodwork I've been a bit quiet on the site.

I'll be trying to catch up with all of the posts over the next day or so... Right after I've been off to First Intuition with a swag bag to nick all of the AAT pens, mugs and keyrings from their twelve days of Christmas thingumy whatsit.

Laters