Previous year Employment Allowance refund

Morning

I have received a refund to my bank account from HMRC of Employment Allowance for 2020-2021. How do I record this in my 2021-2022 accounts?

Thank you. 

Parents
  • It depends whether or not your 2020/21 accounts have been finalised.  If so, and your accountant knew about this, it's likely there's a provision sitting in Accrued Income or Other Debtors (11__ code) or possibly in the HMRC/PAYE control account.  If so, post the refund you've just received as a Bank Receipt to that code to reverse it. (If the amount differs, ask your accountant).

    If the accounts haven't been finalised, post a journal dated for the last day of your financial year, debiting Other Debtors and crediting the P&L code for Employer's NI. Then post a Bank Receipt (dated in the current year as per your bank statement) to the same code.

    If the 2020/21 accounts have been finalised but your accountant did not know about this, so there is no existing provision, just post it as a Bank Receipt in the current year to the Other Income code and make sure the narrative is clear so your accountant can pick it up at next year end.

Reply
  • It depends whether or not your 2020/21 accounts have been finalised.  If so, and your accountant knew about this, it's likely there's a provision sitting in Accrued Income or Other Debtors (11__ code) or possibly in the HMRC/PAYE control account.  If so, post the refund you've just received as a Bank Receipt to that code to reverse it. (If the amount differs, ask your accountant).

    If the accounts haven't been finalised, post a journal dated for the last day of your financial year, debiting Other Debtors and crediting the P&L code for Employer's NI. Then post a Bank Receipt (dated in the current year as per your bank statement) to the same code.

    If the 2020/21 accounts have been finalised but your accountant did not know about this, so there is no existing provision, just post it as a Bank Receipt in the current year to the Other Income code and make sure the narrative is clear so your accountant can pick it up at next year end.

Children
No Data