Payroll postings and the Employer Allowance

Question asked by Paul Russell 9 years ago

Hi, I'm new to this package and not really understanding why I have to click on about 30 things to find things

I have a small payroll on one of my companies. I run the payroll, click the post to accounts. It creates a payment liability in the employees purchase ledger account (nope, don't understand this) and that seems to be all there is

I look in the payroll screens and it shows that I have Employers NI to pay. But, I'm part of the 2k scheme

I can't click in the employee P/L to find the payroll double entry and I can't see where the actual liability pops up in terms of the full payroll posting

What am I missing please to identify the full payroll journal and how do I easily see how much of the allowance I've used?

thanks

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4 Replies

Hi Paul

From an accountant's perspective....

First thing you need to get on board with is the fact pretty much everything in Clear Books revolves around the use of invoices and bills...which subsequently end up in trade debtors/creditors. VAT, PAYE, wages, dividends, CT - they all end up in there (VAT & divi's can now be handled differently actually but I won't get onto that). Now, we know this scenario isn't technically correct but for the end user it works and I very much doubt it'll change much anytime soon.

As Mobeen has said above, once you've imported the payroll over into the accounts it will automatically create a 'bill' payable to HMRC for any PAYE due. This bill will automatically allow for the £2k Employers Allowance but quite annoyingly you can't see a running total of the allowance being used anywhere (well, you could drill down into the P&L I suppose) and furthermore the allowance doesn't show up anywhere in the Payroll module whatsoever. Lots of work is happening re payroll though so hopefully things like that will be addressed in due course.

I'd urge you to stick with CB, it's a fantastic system once you get into the mentality. It's literally the polar opposite from the likes of Sage, a good thing of course but it can take some getting used to.

Feel free to ping questions up as and when they occur, happy to lend a hand...

Best answer
9 years ago

Hi Paul,

There will be a bill to HMRC for the tax liability that will show the breakdown of the £2k allowance being taken off.

The system will generate one bill for each employees net liability and another for the tax liability. They should all show in the P/L.

If you are still stuck let us know and will have a look in to it further.

Kind Regards,

9 years ago

Hi Paul

From an accountant's perspective....

First thing you need to get on board with is the fact pretty much everything in Clear Books revolves around the use of invoices and bills...which subsequently end up in trade debtors/creditors. VAT, PAYE, wages, dividends, CT - they all end up in there (VAT & divi's can now be handled differently actually but I won't get onto that). Now, we know this scenario isn't technically correct but for the end user it works and I very much doubt it'll change much anytime soon.

As Mobeen has said above, once you've imported the payroll over into the accounts it will automatically create a 'bill' payable to HMRC for any PAYE due. This bill will automatically allow for the £2k Employers Allowance but quite annoyingly you can't see a running total of the allowance being used anywhere (well, you could drill down into the P&L I suppose) and furthermore the allowance doesn't show up anywhere in the Payroll module whatsoever. Lots of work is happening re payroll though so hopefully things like that will be addressed in due course.

I'd urge you to stick with CB, it's a fantastic system once you get into the mentality. It's literally the polar opposite from the likes of Sage, a good thing of course but it can take some getting used to.

Feel free to ping questions up as and when they occur, happy to lend a hand...

Best answer
9 years ago

Thanks Kevin, appreciated

I'm open to things, I've got 7 companies on it so not got a lot of choice either - but I do like a fair bit of it

One thing I can think of based on your answer above, when I get monies in, such as inter company loans, the bank through the yodlee import makes me click 'refund' to then allocate it to the ledger entry. Could I just change the properties of my ledger entity account to be both sales and purchase so it appears in the first screen or am I over thinking this

thanks

9 years ago

How about creating a bank a/c for inter company loans and explaining them as transfers?

9 years ago

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