Internet Submissions Incentive from HMRC

[hilary1958]

Can anyone advise on the journals for internet submissions incentives from HMRC.<BR><BR>I have been advised to Journal Debit the NIC code on the Balance Sheet and Journal Credit the Employers NIC on the Profit and Loss.<BR><BR>Would it be more appropriate to post the Journal Credit to an income code?<BR><BR>

[claudialowe]

I have avoided this problem as i have no idea either - and cannot think of anywhere sensible to do it on Sage. As far as i can work out wherever you put it, it will make something wrong. I follow the logic about putting it again Ers NICs as otherwise it will look as though you have underpaid for the year, but still not convinced that is right.<BR><BR>The other thing that worries me is when it comes to online filing next year - say - total PAYE/NICs payable = £10,000 amount paid = £9,750 therefore can their system cope with "Oh yes, the other £250 must be their bribe - sorry incentive - from last year - i cant see it working somehow.....<BR><BR>Maybe i am just an old cynic - we'll see.<BR><BR>Claudia<BR>

[brianmcomb]

The information from HMRC regarding accounting for these payments are that PAYE payments in the company accounts should not be reduced by the tax free payment, they fall outside the scope of VAT and they should not be included in the taxable income for the business. Hope this helps.

[NeilH]

Hi<BR><BR>Just an quick 'off the top of my head' comment here, but would it be possible to credit to the revenue accounts? As for not including it in the tax income, P/L income and tax income usually differs anyway.<BR><BR>Neil

[shushana]

We have had the same sort of thing with the flat rate VAT scheme, where you get a balance left on the HMRC Creditor account at the end of the year which is not actually owing to the VAT man. (Having queried the situration with hmrc, I was told that once the correct flat rate amount was paid that was the end of it so far as they were concerned) This was solved by creating a VAT Flat Rate adjustment account in the P & L account and journaling the balance to it. <BR><BR>I have also been pondering what to do regarding the PAYE incentives, and have come to the conclusion that I am going to have an account called "HMRC Adjustments" on my P & L to which all these new things can be balanced at the end of the year. As you say it's got to go somewhere, and the Inland Revenue does say that the PAYE/NI figures shouldn't be altered.<BR><BR>Any further ideas anyone ?