Reducing payroll tax payments

If you need to reduce the amount of a payroll tax payment, for example to record a credit authorised by local tax authorities, you can do this using a non-cash rule.

Note: This method reduces the PAYE / PAYG liability account, and therefore the automatically scheduled payment, while recording a negative expense. If required, you can follow the same steps to record the amount as income in the Revenue section.

To enter the credit value

1. Open the Profit and Loss tab, then open the Expenses section.
2. If you don't already have an account for this, to create one click the Add Account button. Enter the name of the new account, for example 'Credit to PAYG', then click Save.
3. In the data grid, enter the amount of the credit you'll receive into the relevant month(s) as a negative figure.

To post the credit value to the liability account

1. Open the Profit & Loss Rules drop-down list then choose Add New Rule.
2. Enter a name for the new rule, and from the Rule Type drop-down list, choose Non Cash.
3. From the Select Accounts to Apply Rule To section, select the account for which you entered the credit.
4. From the Journal To drop-down list, choose your liability account.
5. Click Next, then click Save Rule.

The adjustment is now posted to the liability account and the relevant PAYE / PAYG payments reduced. The amount of the credit appears as a negative expense. If required, you can merge the line with the Wages/Salaries line using the account grouping options, or if you're using the older style layouts, by giving the accounts the same Spotlight Display Name.