How are receipt of payments from HMRC for staff furloughed under job retention scheme accounted for in Clearbooks?

Question asked by Burnham Savage 1 year ago

Just received first payments from HMRC for furloughed staff. How are these accounted for in Clearbooks?

9 Replies

There are a number of options that you could use. My preferred option is to create a new account code in the Salaries Account Type - say Job Retention Grant - and allocate the grant receipt to that code. It will always show in the P & L but will be netted off the total salaries bill - after all it is a grant towards salary cost.

Hi Burnham,

I would advise speaking to an accountant as to where this should be accounted for, just to be on the safe side.

All the best,

Mohamed.

There are a number of options that you could use. My preferred option is to create a new account code in the Salaries Account Type - say Job Retention Grant - and allocate the grant receipt to that code. It will always show in the P & L but will be netted off the total salaries bill - after all it is a grant towards salary cost.

Hi Gordon,

That sounds perfect and makes great sense! Thank you very much for the contribution.

All the best,

Mohamed.

Gordon, very helpful. Thank you.

May I ask for your guidance on which accounting code to apply a SBBR grant to, or create?

Thank you.

You need to create a NEW code - Settings/Accounting/Account Codes/Create account code/insert your preferred code and location/update

As a suggestion I attach a screenshot of one possible location, but you might use a slightly different code number depending on what you have already created in the Salaries codes.

file

Thanks Gordon, much appreciated. I've done that - successfully, I think! I was referring also to the Business Rates grant. Would you still apply that under this same code or create another new one?

Just set a NEW code up for that under Rent and Rates

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