davidjameson
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Writing off expenses overpaid

Writing off expenses overpaid

Hello, I work for a company and we set our employees who submit expense forms up as suppliers on sage. There's 3 on there who we have paid money too and never received an expenses form. The amounts aren't huge (2 less than £30 and 1 is £127). The payments have been sat there from 2013-14 and unfortunately the staff members no longer work for the company. What's the best way to get rid of these amounts? My colleague has suggested just putting in a dummy invoice that matches the amounts (for sundry) and not putting any VAT on there. I'm just not sure this is right.

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28th Feb 2016 07:49

Any advice would be greatly appreciated, many thanks

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28th Feb 2016 08:00

Why are you not happy with your colleague's suggestion?

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By tom123
28th Feb 2016 08:22

I couldn't think of a better way.

That is exactly what I would do - I don't see what other type of transaction you could post. 

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28th Feb 2016 20:16

Thank you for the responses. I was just worried that putting in dummy invoices would not be technically correct and that if we ever got inspected that they might think we had just paid the amounts to the employees bypassing ni and paye

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28th Feb 2016 21:15

In order for those expenses to have been paid it is likely expense sheets were handed in but have just been lost.  £127 seems a very specific amount.

How were the expenses paid? If paid via the bank then you have a trail on the bank statement that would prove to any inspector that the amounts were paid to staff.  If cash then it's more difficult to prove and is open to abuse.  ("Honestly HMRC, I paid the staff £3000 cash for mileage")

I would listen to your colleagues advice on this one.  Just post a dummy invoice to sundry with no VAT reclaim.   

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