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Hello
I am working with a charity. They have two employees and I need to account for their payroll. I know how the debit and credit entries should be in a normal payroll but this one beats me.
One of them has had a large tax refund. I think he was taxed at BR in his previous job and they've now decided it should be 1000L. I have no problems giving him that but what is the accounting procedure? This refund is so big that it will cover all the tax and NI owed for both him and the other employee for months.
I have scoured the internet for this information but there seems to be nothing. They tell me a dozen times over what to do in the normal situation but none of them cover tax refunds.
Thank you in advance.
Peter
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