Wages Journal

KPMac

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.

wbauk2002

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

KPMac

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.