Sage 50 how do I show £2000 NI allowance

[ANAGLE]

Hi, am preparing our 2014 /2015 accounts for end of year for the accountant and just wanted some help on how to declare / show our National insurance allowance of £2000 which I did not know I had to do. The Salary journal I have been entering every month is as follows:

5600 Staff Gross Wages DR
2300 Staff Net wages CR
6000 Gross Directors Wages DR
2302 Net Salary Director CR
2303 Net Salary Director CR
2313 Employee Tax and NI CR
2310 Employer NI DR

I have been entering the reduced amount of NI against 2313 , can I now go in and enter one journal entry showing £2000 as a credit on 2313 and a debit on 2310 ?
Our allowance was allocated over the first 7 months as £316.88 x 6 and £98.72 x 1 = £2000 so for the first 6 months there was no entry against 2310 as our Employer NI was Nil for these months. I hope this makes sense as I am totally confused newbie to Sage, any help would be much appreciated.

Many thanks

[brucedenney]

The £2000 is going to need to appear in the P&L as the business has "profited" from the allowance.

At the moment, I think you may have already accounted for it by reducing the NI contributions and this has resulted in lower costs in (5600/6000) as such you do not need to account for it again.

If I am wrong and the journals did account for it, the you should have a £2000 imbalance, probably on the PAYE/NI Control account as you have not paid HMRC the £2000 allowance, if this is the case then you need to journal that £2000 imbalance from the Balance Sheet account back to the P&L

In either case all those 23xx accounts should have a verifiable balances when you run a TB at year end. They should all be zero once the following balancing transactions are taken into account. Are you able to verify all the balances?

[ANAGLE]

Hi ,

Yes I reduced the NI in the salary journal declaring only the amount we paid in NI, so you are saying I do not need to do another journal for the £2000? I was confused because on the Ask Sage how to record a salary journal it states:

If your payroll includes a claim for employment allowance:
7006 Employers NI
Reducing the Employers NI with the amount of employment allowance claim. Credit
2211 National Insurance
Reducing the National Insurance liability with the amount of employment allowance claim. Debit

We are running TB year end tomorrow so I can check and hopefully 23XX will be zero.

Many thanks