Did payroll for a client and had to reimburse one of their employees for buying some toilet rolls and milk as there was no petty cash at all. This was added onto their net wages. How do I record this on the payroll journal - there is a small amount of VAT involved too? Is this the correct way?
CR Net Wages £20
DR Expense £16.67
DR Vat Liability £3.33
TIA - never had to do this before as there's always been PC for these kinds of things.
ETA - obviously these actual figures are just an example - I am fully aware there is no VAT liability on Milk.
-- Edited by Sammy76 on Thursday 27th of April 2017 10:23:12 AM
Quick questions- what software?
When you say added on to net wages- just paid in the same day or included on his payslip? (Hoping the former and re latter would be bonkers!)
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Quick questions- what software? When you say added on to net wages- just paid in the same day or included on his payslip? (Hoping the former and re latter would be bonkers!)
Some companies pay 'expenses' through payslip as non taxable. Not sure I agree with the bonkers suggestions. Happy to be proved wrong.. :)
Quick questions- what software? When you say added on to net wages- just paid in the same day or included on his payslip? (Hoping the former and re latter would be bonkers!)
Some companies pay 'expenses' through payslip as non taxable. Not sure I agree with the bonkers suggestions. Happy to be proved wrong.. :)
Wouldn't class milk and toilet roll as 'staff expenses' and in 30 years experience in payroll (in various incarnations) I've never seen loo roll on a payslip. Happy to hear from those who have, but still think it would bonkers.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Didn't he sing "You'll Never Find Another Love Like Mine"
Like it, that made me giggle
but must admit I preferred "See you when I get there"
I vaguely remember it now (where would we be without youtube?) but it wasn't a hit in the UK
It's always amused me that one, even worse is a song called "Just When I Needed you Most" by Randy Vanwarmer!!! Both cracking songs though and I'm listening to RV through the headphones as I type.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
We sometimes pay expenses via payroll as long as we have a VAT receipt.
If a staff member saw the toilet roll in the office loos had run out and there was no petty cash available its quite possible that they might nip out and get some. My boss was told by HMRC that we can provide tea, coffee & milk in the kitchen but not bread so my boss buys that out of her own money for us.
