SMP Refunds

monkeypuzzle47
monkeypuzzle47 Registered Posts: 134 Dedicated contributor 🦉
in General accounting discussion
can i ask please, how do we record smp refunds in the accounts? I have not done this before.

i have entered the usual annual journal to record the wages etc, however my client received refunds plus compensation from hmrc and i want to be sure the correct way to record.

advice appreciated, as always

regards,

Jenny

Comments

  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    I normally offset them against wages on P&L.
  • coojee
    coojee Registered Posts: 794 Epic contributor 🐘
    groundy wrote: »
    I normally offset them against wages on P&L.

    I agree, that's what I'd do aswell, it's only repaying something that you've paid out so you post the repayment to the same place you posted the original payment.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    ..and the compensation to other income.

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