Revenue Incentive Discount

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Although our accountants deal with our payroll we still have to post the journals etc.

The thing is we are to deduct £150 from the national insurance figure (online revenue incentive) before sending payment to the Inland Revenue. I'm not quite sure how to post this into sage.

Could anyone help.

Thanks for replies.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Revenue Incentive Discount

    Assuming you use nominal code 2211 (National Insurance) for the wages control journals, the journal will be:

    Debit 2211 National Insurance - £150.00
    Credit 4900 Miscellaneous income - £150.00

    The credit entries (PAYE and gross NIC)supplied to you by the Accountants will not include a reduction of £150.00. By bringing in the above journal the control account will balance when you come to post the payment to HMRC.

    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Revenue Incentive Discount

    When we post the journal, the nominal codes that we use are:
    7000 Gross wages
    7006 Employer NI
    2210 PAYE
    2220 Net wages

    So I guess the postings would be:
    Debit PAYE
    Credit Misc Income

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