Hi,
I cant work out how to record the online incentive payment, even though I am sure
that it is not all that complicated.
I understand it needs to reduce the Income Tax and NI Liability account by £75 so this would be a DR but cant work what the CR would be.
I didnt actually get this amount, it just came off the amount that I paid in May. eg The initial tax amount due was £9500, I added the online incentive into my payroll software and it then reduced the actual amount paid to £9425. This is the actual amount that I paid from my Current account so I need to know how to account for the £75 in my solar accounts.
Thanks,
Kim,.
Hi Kim,
You can record this as 'Uncategorised Income'. To record the payment, create a General Transaction from the 'Uncategorised Income' account to the 'Income Tax and NI Liability' for £75.
Note: This payment is tax-free, so at the end of the financial year when you come to calculating your annual corporation tax (or self-assessment income tax) you will need to remember to reduce your taxable income by £75.
Regards,
