A client recently made some employees redundant and paid them each some redundancy money.
All were small amounts, nothing over £2,000.
I know as this is under £30,000 it is tax free, presumably this is written off in the Income statement?
If so, what is the usual name for an account of this type?
Thankyou
Robbie
Robert Palmer
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Accounting for Redundancy
The type of account normally is Employee compensation as its not salary in the regular course of business.H'ever this may be carged to Salaries & wages keeing in view the concept of materiality where no separate disclosure is required.