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- Dec 24, 2024
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Hi,
Any feedback would be appreciated from anyone using the staff holiday buying scheme (for client /Employer), especially the accounting entries.
I am trying to get my head around the process and the double entry posting for staff holiday (sacrificed) buying scheme. Example Staff buys 5 extra days for £50.
On staff payslip under Earning section - the £50 is sacrificed for Tax/NI saving.
Should there be any other deduction i.e a deduction for the same amount so this does not cost the employee? Or simply just the amount the holiday is bought and Tax/NI saved?
What would be the accounting entry to record this?
If my thinking is correct the entry in the accounting records would be to reduce the gross salary expense (P&L) account by £50 and Dr the salary control account (balance sheet)?
Any feedback would be appreciated from anyone using the staff holiday buying scheme (for client /Employer), especially the accounting entries.
I am trying to get my head around the process and the double entry posting for staff holiday (sacrificed) buying scheme. Example Staff buys 5 extra days for £50.
On staff payslip under Earning section - the £50 is sacrificed for Tax/NI saving.
Should there be any other deduction i.e a deduction for the same amount so this does not cost the employee? Or simply just the amount the holiday is bought and Tax/NI saved?
What would be the accounting entry to record this?
If my thinking is correct the entry in the accounting records would be to reduce the gross salary expense (P&L) account by £50 and Dr the salary control account (balance sheet)?