Paying Expenses & VAT

moosh

I am about to start paying employees expenses through our payroll from end of July. All expenses paid have been incurred through normal business activities and we have a dispensation in place.

I need to set each type of expense payment up separately on the payroll system, ie hotel acc, motor exps, subsistence and I know how to do this. However, how do I deal with any VAT on the expenses? I obviously need to show the full amount on the employees wage slip, so do I just need to journal the VAT element out of the P&L once the payroll journals are posted?

Hope someone can advise...:001_unsure:

claudialowe

Yes you can - but I have always done it slightly differently (no idea why, but it must have seemed a good idea the first time I did it!!!)

I journal the total amount of the expenses into a petty cash type account, and then "pay away" the expenses into the various P&L accounts accounting for VAT if necessary.

Claudia

Nilesh Mandvia

Staff expense claim

I deal with the staff expenses two different ways.


1. I opened the purchase ledger account (like suppliers account) for the regular expesne claim staffs. And this expense would be paid by through the purchase ledger.

2. Paid through the petty cash, and used spread sheet to analyse it by expense type and done one journal for the month.

I have used payroll as well, but only when I have a P11D module incorporated with the payroll.

Nilesh

Poodle

Hi

I would use payroll/wages control for the journals, that way when the account goes to 'il' you know everything has been posted.

Poodle