[4/30/2020 8:44:37 AM] Richard Bartram: Profit and loss account
I agree that some of the small items can be re-categorised for instance fax can go in telephone
and Internet and xero into IT and software.
Visa fees are actually fees to pay for visas I have renamed it UKVI and we could either
merge it or add it to Home Office fees
Consultancy. These should not be wages payable. I have previously reported these to HMRC
as self-employed income and this is something I will come back to at the end as I want to
ensure that the figures for salary (PAYE) and consultancy are accurate.
Balance sheet.
Accounts Receivable. I think we should simply write those off. I tried to do that with one
invoice when I went into invoices not yet paid and made a mess of it trying to create a credit
note as advised by the Xero help page the client was Antoine . I think we should just clear
that balance as bad debts.
Prepayments I have dealt with moving those transactions to the appropriate account which
was either an income services or Home Office fees account.
Office and computer equipment I agree we can depreciate.
Accounts Payable. Almost all of these seem to be national insurance/Payee inland revenue
from around 2015 created by me rather than any RTI submission. I created them in respect of
one employee to try to gauge the total costs of employing that employee .I have paid the
inland revenue. What do we do delete them? There are a couple that are not Inland Revenue
which we shouldn't delete.
Income in advance I've dealt with.
Refunds. There are two transactions one for £200 and the note it says it was paid to me
because I paid one of the employees at that time out of my own bank account because we did
not have enough money to pay the employee. Where should it go? The second is for £3200
which was paid to a client as a refund which I presume should go in income to reduce income
(a repayment) no VAT.
I would like to go through the payroll figures next and will email you shortly
[4/30/2020 8:44:56 AM] Richard Bartram: Thank you Richard
[4/30/2020 11:11:20 AM] Richard Bartram: Can you help me with Tax year 2019-2020
P60 RB Net pay is £24004.14
P60 SB Net pay is £3503.49
---------------------------------------
TOT £27507.63
But Account Transactions Wages Payable Credit from payroll expenses journal is 26,702.55
which does not match £27507.63. Debits Total £27333.21 and there is a figure (630.66)
which I do not understand. Can you help me out with this.
PDF attached
[4/30/2020 1:58:56 PM] AAAAA: Thanks Richard, I'll look at these tomorrow or Monday
and get back to you. AAAAAvia
[5/4/2020 12:15:00 PM] Richard Bartram: Tax year 2018-2019
We moved to doing payroll on XERO
Xero Wages Paid by employee RB £19811.21 £13873.08
YL £4145.48
SB £1224.65
But there is a running balance of (168.75 ) which suggests I have overpaid by £168.75
I am still not sure if I am reading P60s correctly SB says pay was £1252.80 RB £25131.95 -
2608.60-2004.95 so £21518.40
RB consultancy was £13873.08 which was reported to HMRC
[5/4/2020 12:16:52 PM] Richard Bartram: Ignore that last one
[5/4/2020 12:23:21 PM] Richard Bartram: Tax year 2018-2019
We moved to doing payroll on XERO doing a search on the account transaction and filtering
by description
Xero Wages Paid by employee
RB £19811.21
YL £4145.48
SB £1224.65
But in the full unfiltered report there is a running balance of (168.75 ) which suggests I have
overpaid by £168.75
I am still not sure if I am reading P60s correctly SB says pay was £1252.80 RB £25131.95 -
2608.60-2004.95 so £21518.40
RB consultancy was £13873.08 which was reported to HMRC
[5/4/2020 1:30:35 PM] Richard Bartram: Tax Year 2017-2018
Thepayrollsite.co.uk id XXXXX password YYYYYY
Thepayrollsite shows net wages payable of £28507.72
Wages Payable in Xero shows £28507.72 Great
All transactions are in wages payable
Payroll Site Xero ( wages payable)
IT Net £1092 £1200 so £ 108 overpayment
SB Net £2419.89 £2415 so £4.89 underpayment
YL Net £8193.63 £8724.38 so £530.75 overpayment
RB Net £16806.20 £16726 so £80.20 underpayment
Total overpayment £553.66 But the running balance in Xero is (757.86)
RB Consultancy was £19308 which was reported to the inland revenue
[5/4/2020 3:32:08 PM] Richard Bartram: Tax Year 2016-2017
The Payroll site shows net pay of £17966.44
Wages Payable in Xero shows £21466.44 (credits) £21409.44 ( Debits) paid so pay owed of
£57?
I don't understand why payroll site figures are different from Xero. They were all manual
journal imports
Filtering the xero Wages payable by employee gives.
Payroll Site Xero ( wages payable)
RB Net £12569.40 £16558
SB Net £1475.20 £950.60 so underpayment
IH Net £42 £42 correct
KL Net £3879.84 £3854.84 so £25 underpayment
TOT 17966.44 £21405.44 which is £4 out from the debits in xero
Payrollsite logon details as before. It can run lots of reports. I can attach the reports from
there and Xero if you need.
[5/4/2020 4:04:34 PM] AAAAA: Hi Richard,
I've recategorised Xero into IT Software & Consumables.
Fax: do you mean eFax? I can't see Fax anymore.
UKVI: I can either create a group on the P&L for Home Office and you can then see UKVI
under it (but it will show like a title with sub accounts) or I can just move all the UKVI
transactions into Home Office. In this case, you won't be able to see them separately in the
future. They will be merged. What do you prefer?
Consultancy - noted, thanks.
Balance Sheet:
Accounts Receivable: ok, we will write these off
Prepayments: thanks
Office and Computer Equipment: Currently, I can't see any of the details in Xero. It might be
that I can after the Fixed Assets is set up. However, if not, I'll do it with a Manual Journal.
Office Equipment I suggest to depreciate during 5 years and Computer Equipment during 3
years. Please confirm if you agree.
Accounts Payable: Have these payrolls also been entered into Xero any other way also (eg. as
a Manual Journal)? If yes, those account for these PAYE/NI already, so then they are
duplicates. In that case we have to either create a credit note for them or void them. If not,
then it raises another question: how were the salaries back then accounted for?
Income in advance: thanks
Refunds: If anything was paid to you, it should go into Director's Loan account and then the
salary you paid from your own account, should be marked as paid from Director's Loan. Let
me know who you paid the £200 to and when exactly and I'll mark it on their salary.
Yes, the £3200 should go into income to reduce it. We will change that.
Payroll: I need a bit more time for this and will come back to you with questions if I have
any.
Thanks,
AAAAAvia
[5/4/2020 11:56:00 PM] Richard Bartram: Thanks . I'd rather be in BBBB myself along with
wife and kids.
[5/11/2020 1:39:11 PM] Richard Bartram: hi hope you are well how are you doing ?
[5/11/2020 4:05:54 PM] AAAAA: Hi Richard,
I'm good thank you. Hope you had a nice weekend.
I'm really sorry, I couldn't get to this last week. First week of the month is always very busy
for us - partially because of closing the prior month, partially because it is a VAT deadline. Is
it ok, if I do this by Wednesday and get back to you? Apologies for the delay.
Thank you,
AAAAAvia
[5/11/2020 11:46:43 PM] Richard Bartram: Thank you AAAAAvia. No deadline necessary.
If we can do one year at a time working backwards that will help me understand and maybe
not ask the same questions for each year. Best Richard
[5/12/2020 8:56:24 AM] AAAAA: Hi Richard,
A few comments on the earlier points you've sent:
Office and computer equipment: Yes, computer repair shouldn't be computer equipment. If
their are small amounts, you can put it into general expenses.
Please let us know once you have finished and we can depreciate the rest.
Accounts Payable: These are mostly PAYE from 2015. So I suggest to remove these once we
got to post 2015's payroll correctly.
There is one more 'Laptop repair' in here. It looks like it was paid by you. Please confirm and
I'll move it to Director's loan.
Refunds: The £3200 is actually money coming in. Not money going out. If I move it to
Income (no VAT) it will increase it. Is that correct, shall I do that? It's just strange why it is in
'refunds'.
Lastly the £200 you paid to Yasmin, I'm not sure if you actually paid it from your account as
it Xero, it looks like she was fully paid from the partnership. If you did pay her the £200, then
she will be overpaid. So this might be the reason if you can't find it.
AAAAAvia
[5/12/2020 9:12:02 AM] AAAAA: Hi Richard,
One more thing. Your PAYE/NI liability accounts are separate on the Balance Sheet. I'd
suggest to merge these as every time you pay HMRC it's their sum figure.
Are you ok for us to merge them?
Thanks,
AAAAAvia
[5/13/2020 4:17:02 PM] AAAAA: Hi Richard,
To give you an update:
-Accounts Receivables have been written off.
-Payroll: we've cross checked them, but there is still a difference in 2019-2020. Your
difference, we can pay it into or from the director's loan account, so that is less of an issue.
The problem is everyone else. I suggest we finish checking it all the way back to 2015 and
see how much everyone is off. Anyone who is working for you at the moment, I'd suggest to
adjust May's payslip for. I am a management accountant, not a payroll expert, so I'll check
with my payroll expert if he has any better suggestion.
One more question: you processed and posted the payroll from Xero and the P60s are from
Xero also - how come they don't agree?
Do you have any idea?
Thanks,
AAAAAvia
[5/15/2020 2:57:41 PM] AAAAA: Hi Richard,
Also just a reminder: please don't forget to look through the fixed assets (equipments) and let
me know once we can depreciate them.
Thanks,
AAAAAvia
[5/28/2020 2:22:35 PM] Richard Bartram: `Not forgotten
[5/28/2020 2:26:33 PM] Richard Bartram: One more question: you processed and posted the
payroll from Xero and the P60s are from Xero also - how come they don't agree?
Do you have any idea?" No I have done nothing manually I will have another look
[5/28/2020 2:48:12 PM] AAAAA: Thank you!
[6/10/2020 4:42:26 PM] Richard Bartram: After some delays I am back on the job firstly as
regards the balance sheet .
As regards computer and office equipment I'm reasonably certain that everything is now
correct.
As regards why P 60s the tax year 2019 to 2020 differed from the wages payable credit from
the payroll expenses and journal I think that is because of employee pension contributions.
The net pay total of £27,507.63 p in the P 60s when compared with the wages payable credit
from the expensive journal of £26,702.55 p is exactly £805.08 p out which is the exact figure
in the pensions contribution report. Tomorrow when I go through previous years I expect I
will find the same.
The ongoing problem I think is what to do with the payroll manually imported from the
payroll site. Previously sent you all the PDFs and the payroll site login. We stopped using
that site and everything went through zero from April 2018, but national insurance payable et
cetera prior to that is still showing in the balance sheets as payable. And indeed wages
payable is still showing up for the dates prior to April 18. I'm going to do do more work on
everything tomorrow, all the best Richard
[6/22/2020 2:32:35 PM] Richard Bartram: Tax year 2019-2020
P60 RB Net pay is £23199 ( after pension contributions )
P60 SB Net pay is £3503
---------------------------------------
TOT £26702
Double checking by filtering payments by name in description gives those figures but in the
unfiltered report I am £20 out.
Tax Year 2018-2019
Wages payable from Ledger and P60’s again match but double checking the actual payments
made by my calculation I overpaid YL £200 and underpaid SB by £28
Tax Year 2017-2018
Thepayrollsite shows net wages payable of £28507.72
Wages Payable in Xero shows £28507.72 Great
All transactions are in wages payable
Payroll Site Xero ( wages payable)
IT Net £1092 vs £1200 so £ 108 overpayment
SB Net £2419.89 vs £2415 so £4.89 underpayment
YL Net £8193.63 vs £8724.38 so £530.75 overpayment
RB Net £16806.20 vs £16726 so £80.20 underpayment
Total overpayment £553.66 But the running balance in Xero is
Tax Year 2016-2017
All looks ok
Tax Year 2015-2016
All looks ok
Tax year 2014-2015
The actual payments in Wages payable match the net pay in the payroll site that’s all good
but I think the manual journal credits are out.
Tax year 13-14 All good do we need to import the credits from the payroll site ?
I think my calcs are correct . Overpayments to YL and IT etc cant be undone ( reclaimed )
Underpayments to RB and SB can I presume be taken off directors loan account.
It was one of my main objectives to ensure I had reported payroll correctly and I think I am
almost there. I want to refile my accounts with HMRC asap . What is next to do?
All the best Richard
[6/22/2020 3:39:17 PM] AAAAA: Hi Richard,
I'm away until the 1st July. I'll ask my staff to go through this and give you an update when I
am back. Thanks, AAAAAvia
[6/22/2020 4:00:27 PM] Richard Bartram: Thank you any questions etc they have please ask.
[6/22/2020 6:02:25 PM] Richard Bartram: My current position with HMRC
[7/28/2020 11:07:03 AM] Richard Bartram: Any news ? I got my first fine for non
submission of accounts and this week it was doubled to £1000. The fines just keep inrceasing
the later file
[7/28/2020 11:07:56 AM] Richard Bartram: and I dont have spare money to pa £1000s
[7/30/2020 12:55:55 PM] AAAAA: Hi Richard,
Checked your payroll twice and under and overpayments with staff not even working for you,
it is very difficult to correct.
I'm not a payroll specialist, but I reached out to someone if he has any suggessions for
historical corrections.
As the difference is around £500, I would ask your accountant submitting the year end for
you, to make an adjustment for these.
The PAYE bill breakdown is the tax due for salaries. They incur an interest if you pay it late,
but the majority of the amount is PAYE tax due.
If you want to have a call to discuss it, let me know. I'm under lockdown right now, so I can
do most of the time.
Thanks,
AAAAAvia
[8/4/2020 2:11:07 PM] AAAAA: Hi Richard,
The person I reached out to for payroll had the same suggestion. Please see below:
'If any of the differences are in this tax year (after the 6th April 2020) then I would suggest a
correction figure could be processed on the next payroll run to bring the payroll figures in
line with payments made.
If the differences are all historical then an accounting adjustment would be easier as the
previous payroll years have now closed and lengthy process of doing Earlier Year Updates
for a relatively small amount doesn’t seem worth it.'
So your accountant submitting the year end should do a historical adjustment and correct the
current year on the next payroll - if there are any differences in this year.
Let me know if you need anything else or if you have any other questions.
Thanks,
AAAAAvia
[8/10/2020 3:55:45 PM] Richard Bartram: Thanks
[8/10/2020 4:04:46 PM] Richard Bartram: Can we go back to the balance sheet If I run it
from March and look back there are Large PAYE and NI liabilities which were transferred
over from the payroll site prior to my starting using xero for payroll on 12/04/2018 by
YYYYThee are balances for 2018/17/16/15 those must be erroneous imports . Is that correct?
So do we just delete them ? Also I recall you thought it was a good idea to "merge" PAY
Payable and NI payable ( have one account in the balance sheet ) . Similarly would it be a
good idea to similar with Acc 858 and 659 Employer and Employees pensions payable?
