A small tax refund - happy with that!

[suchabigask]

I paid a little bit too much tax last year - the Inland Revenue caught up with me and kindly refunded the PAYE and NI that was overpaid.

Now I am just a little unsure how to account for the increase in my company bank balance as a result. Obviously it isn't income as I didn't raise an invoice.....does it even go through the P&L, or does it just appear in the balance sheet somehow??

Cheers for your thoughts on what is probably a pretty basic question.

[Bradley]

Re:Payroll

Hi
It'll mean that you've reclaimed too much through the company last year as the additional PAYE/NIC you've now been repaid was a cost. As a consequence the additional income will be taxable this year. As long as the amounts involved aren't too large the Revenue won't insist on you changing the previous year computation.