Forum Message

Ee & Er NI refund

Good morning,

I run a limited company and it seems as though we have paid more NI than we should have. As such we have received a refund from HMRC.

Part of this is Employee NIC, and part is Employer NI.

I have created a Purchase Credit record showing the money received, and I have created a Money Paid Out record showing the Employee NI paid (back) to the employee.

This leaves the Employer NI showing on my Income Tax and NI Liability account though. How do I account for this to return the balance to zero?


Posted by Matt on Apr 7, 2016 11:51 AM BST

Hi Matt
To record the refund from HMRC create a General Transaction from the 'Income Tax and NI Liability' to the 'Cheque Account' for the amount of the refund.

To ensure that the balance of the 'Income Tax and NI Liability' is zero, you need to go back and correct the original transaction that caused you to make an overpayment to HMRC.


Posted by Karyn Green (Solar Accounts) on Apr 8, 2016 5:45 AM BST