Im just starting out, am in the middle of level 4 AAT but this is the first time I have worked for myself and although I have passed my exams I dont have an awful lot of practical experience especially when it comes to making corrections when someone has historically done something wrong.
The person Im currently working for had been posting wages direct from the bank to staff salaries (7003) as net rather than gross and not doing any wages journals. They had been using BASICS RTI software to calculate their payroll and had not claimed Employers Support Allowance. It also appears that they were taking the figures from government gateway and that was the amount they paid to HMRC. Employers Support Allowance has been claimed and kicked in in month 10 (January payroll)
Ive put through the salary journals and now have a credit balance on Employers NI cost (7006) which I believe is due to her overpaying but I want to reconcile to confirm this but I dont know where to start. Ive got the figures from HMRC gateway, the ones from the RTI software and the ones on the nominal code but still cant make head nor tail of it. Can anyone help?
Hi Kate, I don't use Basic Pay but does the figure for employers NI on there match the figure on sage? Also look at the tax/NI deductions for the employees, does that figure plus the Employers NI match the total tax/NI paid to HMRC?
If not I think the best thing would be to do an excel sheet and bring it forward month by month.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi Leger. Thanks so much for your reply.
Thats the main problem, the figures on the Basics software dont match to HMRC gateway or what got put through Kashflow. Theyre all completely different. Its a bit of a mess. . The credit balance on 7006 is £283.28. The business only began paying wages in month 5 but the employers support allowance hadnt been claimed and didnt kick in until month 10, up until then shed been paying more than she needed to. According to the basics software she owed HMRC £298.76 in month 10 and received a rebate of £15.48 in month 11. The difference between those 2 figures is £283.28 which matches Kashflow. Does this mean its correct or is it just a coincidence? I know this probably sounds like a silly question. I understand payroll journals and where things need to go and since month 10 Ive done the journals but I havent come across many errors like this so lack experience in resolving them. Any help is so gratefully received. Thanks Kate
Hi Kate, it's John by the way, you may not see my real name if using a tablet or mobile.
It certainly sounds like the two agree, yes. Check to see that in Kashflow what basic paye says should have been paid to HMRC is out by the same amount that the client has overpaid. If it is then bingo. If it isn't then you'll need to go through it month by month.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
