With the new £2000 allowance set against NI, can you tell me how this credit should be balanced against tax liabilities.
Hi Barry,
For others reading this forum page, our help topic on PAYE and NI is here:
http://www.solaraccounts.co.uk/help/how-to-record-paye-and-ni-contributions.php
And the HMRC employment allowance of £2,000 is described here:
https://www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics
I would handle that by recording a General Transaction at the end of each month from the Employee Costs account to the Income Tax and NI Liability account, with the total yearly amount capped at £2,000. So for example if your Employer's National Insurance is £1,200 per month, the amount of the General Transaction would be £1,200 in April and £800 in May.
Please check this approach with your accountant.
Regards,
