Journal entries for Child Care allowance for Directors

Doug Registered Posts: 3 New contributor ?
Can some one tell me the journal entry to final accounts for child care allowance of 243 *12 months =2916 This is to a Director where the allowance is recorded in Payroll .


  • Gem7321
    Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
    Was this for childcare vouchers or direct contracting? If you paid them extra salary to cover then this would be treated as earnings through payroll and PAYE NIC should be deducted and this would appear as directors salary in your accounts. If you paid vouchers or invoices through direct contracting this would be a P&L expense entry as 'childcare costs' or whatever you would like to call it.
  • rwb
    rwb Registered Posts: 32 Regular contributor ⭐ ? ⭐
    Very much agree with Gem7321, the amount of £243/month would indicate the 'company' (making large assumptions there) was paying childcare vouchers outside of PAYE as I believe that is the allowable limit/month... to a P&L code as 'childcare' or equivalent for me
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