Overpayment

[Pixie6444]

I'm currently preparing my year end accounts (may13-apr14) for the accountant and have noticed ive taken too much salary. (Currently take £663 (tax free allowance) and I've taken one too many, genuine mistake )
Anyhow So the salary payments now doesn't match up with my final payslip for the year that was issued back in March.
Does anyone know what will happen? Is this a big deal? Or can it be corrected easily without question.
Thanks so much.

[TheCyclingProgrammer]

If you mean you've done your payroll correctly, but made one too many payments, just show the payment as a debit to the directors loan account.

Then pay the money back and show it as a credit to the same, cancelling it out. Alternatively, when you run your next monthly payroll, instead of paying yourself, show the salary payment as a credit to the directors loan account instead.

Either works, as long as you make sure the balance is settled within 9 months of the end of your financial year to avoid corporation tax issues.

[Chris at CrunchAccounting]

Overpayment

As long that the RTI submissions are correct with HMRC, you can either:

1) Repay the salary overpayment back into the company
2) Declare a dividends to clear the amount (board minutes need to be completed saying the dividend is repaying a directors loan).
3) Off set the over payment against any business expense you paid personally.
4) When you run your next month’s payroll, you pay yourself less by the overpayment amount.

The only other requirement is that this is repaid by 9 month after the year end, so 31/01/2015.

[northernladuk]

If you have an accountant why on earth are you not asking them?? I just don't get why people come to ask strangers on a free forum stuff that is between them and their accountant.

[GazCol]

If you have an accountant why on earth are you not asking him?? I just don't get why people come to ask strangers on a free forum stuff that is between them and their accountant.

Him?

I suspect by starting your first question with 'if' you may have answered your second.