Wages Journal

KPMacKPMac Just JoinedPosts: 4Registered
The company I work for include a travel and subsistence allowance with the weekly pay. They have a dispensation in place authorised by HMRC.

Could someone please clarify how I should carry out the wages journal to include the expense and should I post this as T9.

Any help would be appreciated.


  • wbauk2002wbauk2002 Well-Known Posts: 110Registered
    Debit expenses, gross wages and employers ni

    Credit net wages (inc expense), ni and paye

    It depends if you have a vat if you want to claim it back, otherwise a t2 if remember correctly

    I wouldn't imagine an expense would be a t9 because its business activity with another company
  • KPMacKPMac Just Joined Posts: 4Registered
    Hi, thanks for your response.

    I'm struggling a little due to the round sum dispensation and how to apply the correct vat amount.

    What are your thoughts?

    I have looked at HMRC website and found the following:

    You must pay for the actual cost or a proportion of the actual cost of these expenses. You cannot reclaim VAT on travel and subsistence expenses when you pay an employee a flat rate for these expenses.
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