Maternity Pay Advance - where does it go

Maternity Pay Advance - where does it go

Didn't find your answer?

Just doing a set of accounts where HMRC have advanced the entire year's Maternity pay up front, and it is half-way through being run off at the year end.

Half is clearly a liability, would you pull the other half as income, or a reduction in wage expenses? It's a big chunk of cash.

Or am I thinking about this too hard?

Thanks
Neil Wilson

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By User deleted
15th Apr 2008 15:44

thinking too hard
I cant say that this shuld be treated as income, as its unearned by your client, what i would do is show it on the balance sheet and release it to the I&E over the year, which in effect reduces your salary expense in teh accounts, go with your initial thoughts on this one!

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