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How To Record An Overpayment In Xero?

By Jayne Waugh

If you overpay a Supplier or your Customer accidentally pays you too much then you should record this in Xero when you reconcile your bank account.

To record and reconcile the transaction, follow the simple steps below:-

Customer Overpayment

  • In the reconcile tab of your bank account, select the transaction you want to reconcile and add details
  • Next to received as, select overpayment. This will show on the customers account as an overpayment.  This can be off-set against future invoices or can be paid back to the customer.

RELATED: Get a FREE Xero Health Check here

Supplier Overpayment

Next to spent as, select overpayment.This will show on the suppliers account as an overpayment.  This can be off-set against future invoices or can be paid back to you.

If you require any further assistance please don’t hesitate to contact a member of the team, we will be more than happy to assist you!

Should You Re-Enrol Your Staff Into The Pension Scheme?

By Jayne Waugh

As a Business Owner, every three years you will need to re-enrol your staff who are eligible for automatic enrolment but aren’t in a qualifying scheme.

As an employer, your duties will vary depending on whether you have staff to re-enrol or not. Either way, you will need to complete a re-declaration of compliance. This is needed to inform The Pensions Regulator (TPR) how their duties have been met.

The steps below will guide you through your employer re-enrolment responsibilities to keep you on the right track…

Step 1 – Choose Your Re-Enrolment Date

An employer’s re-enrolment date occurs by default on the third anniversary of their automatic enrolment staging date. Fortunately, there is a six-month window that you can choose from. This being, three months on either side of the anniversary of the staging date.

How do I find my re-enrolment date?

The Pension Regulator re-enrolment date tool will assist you in choosing your re-enrolment date.

Step 2 – Assessing Your Employees Within Your Payroll Software

The employees that must be assessed must meet one of the following criteria:

  • 1st… they opted out of the pension scheme.
  • 2nd… they left the pension scheme after the opt-out period.
  • 3rd… they are still enrolled in the pension scheme. But have reduced their contributions so it is now below the total minimum level.

There may be certain staff that meet the above criteria but do not need to be assessed if they fall into one of these categories:

  • Already in a qualifying pension scheme.
  • Below the age of 22.
  • Are at, or over state pension age.
  • They have not met the AE earnings criteria.

Where employees meet the age and earnings criteria, there are certain circumstances where the employer can choose whether or not to re-enrol the employee:

  • Employees who left the automatic enrolment pension scheme within the 12 months leading up to the re-enrolment date.
  • Employees who were paid a winding-up lump sum in the 12 months leading up to the re-enrolment date. Then left the employment and were later re-employed by the same employer.
  • Employees who have either given notice or been given notice of the end of their employment.
  • Employees who hold the office of director with the employer.
  • Lastly, employees who are a partner in a Limited Liability Partnership. Which is the employer, and is not treated for income tax purposes under HMRC’s salaried member rule.

Step 3: Re-Enrolling Your Employees

Once you have determined which employees are eligible for automatic re-enrolment. The next step is to re-enrol these employees into a workplace pension scheme.

This must be done within six weeks of the chosen re-enrolment date.

Employer and employee contributions must also be paid into the pension scheme.

Step 4: Communicate With Your Employees

After re-enrolling any staff member back into an automatic enrolment pension scheme. You are legally obliged to write to each member of staff informing they have been re-enrolled into the pension scheme.

The letter must explain that they have been enrolled. It must also explain their right to opt-out of the pension scheme. And it must also contain details of what contributions will be paid into the scheme. Your chosen payroll software will produce this letter.

Step 5: Complete Your Re-Declaration Of Compliance

The re-declaration of compliance must be completed within five months of the third anniversary of an employer’s automatic enrolment staging date. Furthermore, the re-enrollment date chosen by the employer does not change the re-declaration deadline.

The re-declaration of compliance is an online form. It informs The Pensions Regulator that the employer has met their legal re-enrolment duties.

If someone else is helping the employer with their automatic enrolment duties, it is still the employer’s legal responsibility to ensure the re-declaration is completed on time and filled in, correctly.

To complete your re-declaration of compliance, you can do so here: www.thepensionsregulator.gov.uk

Although an employer has five months to complete this re-declaration of compliance. It is recommended that it is completed as soon as possible after the re-enrolment date.

What Next?

Whether you had staff to put back into your pension scheme or not, you will still have ongoing pension duties.

Then, every three years you will need to reassess your staff to see whether you have any who must be put back into your pensions scheme

Failure to complete your pension duties could result in you receiving a fine from the Pension Regulator.

If you need help with any pension query that you may have. Don’t hesitate to contact our offices using the link below – we’ll be more than happy to help.

Xero Training for Business Owners | A Comprehensive Course

By Jayne Waugh

For business owners big or small, Xero is the software of choice for advanced, yet easy accounts management and making tax digital.

Xero gives you an insight into how your business is performing, future performance metrics, payment scheduling and improved time management.

Here at Northern Accountants, we provide classroom or remote Xero Training for your teams, or for independent business owners.

You’ll also be happy to know that we’re a Xero Platinum Partner. 

This means you’ll get all the attention and professional training you or your team require.

Our mission is to help as many businesses to become more confident using Xero. Freeing up more time to grow your business and live the ideal work-life balance.

Why choose Xero?

computer screen with a Xero logon on the front with a question mark on the side

Accounting software can be a valuable asset to your business, automating many of the functions that would otherwise take you time.

If you are a beginner in using a cloud-based accounting system, then this platform is for you. Xero allows for easy navigation for non-expert users.

Xero is one of the accounting software giants.  This will help your business manage your cash flow, taxes, without going through the trouble of manual data entry.

With a combination of functionality, easy interface, valuable features and intelligent automation, Xero is second to none.

Xero’s cloud enablement means that you can use Xero online on a variety of mobile devices. This includes your smartphone, laptop, tablet, or PC. This essentially means that you can have access to your financials anywhere. Again, this is really helpful if you’re travelling for work and suddenly find yourself needing important financial data which you don’t have to hand.

How our Xero Training is Structured?

As part of your onboarding meeting, we will determine exactly what length of training you require. This includes if you require any additional support, which we’re always happy to help you with.

Moving Accounts

Before we can get you started with your Xero training, we’ll first move your accounts over from your current accounting system. This is all done by our team prior to your training session.

You’ll then be converted to Xero from your previous accounting system. Again, this switch-over is carried out prior to your training.

If you’re a brand new company, the Xero set-up is straight forward, and it’s also carried out prior to your training.

Training Guidelines

Once we’ve set up Xero for you, we’ll work with you prior to the training, where we’ll outline what we’ll be covering in the upcoming sessions.

The training is currently done remotely via google hangouts where we share screens and data. Or, if you prefer classroom training, and if we’re not restricted by COVID-19, we can do in-house training where all the appropriate safety measure will be covered.

Then, after your initial setup and consultation, you’ll be contacted prior to the training with a list of items which are required to bring along with you to the training. These may include a

How long does our Xero Training last?

As the training is structured around your own circumstances and your understanding of Xero, will determine how much training you actually require.

Support will always be given after the training sessions until you feel confident in using the software efficiently. This can be carried out over the telephone, email, or a simple short video to resolve any questions you may have.

What’s inside our Xero Training?

After your training, you’ll have gained detailed knowledge of Xero. So much so that you’ll be able to run your internal finance function smoothly and efficiently.

As for structure… We split the sessions into shorter segments. Furthermore, we can break them down even further and work on the key areas that you’re most interested in.  This way you will learn more effectively.

As a bonus, we’ll also design homework for your specif needs. This will be given after each session – helping you to prepare for ready for your next training session!

If there are any other processes within your business needs, we can assist you in integrating and implementing the appropriate app that works well with Xero.

We will show you how to get the most out of the Xero platform

By the end of the training session, you will have confidence in using the software. And we’re positive you’ll love using this ingenious software that is Xero.

How much does our Xero Training cost?

The cost all depends on the level of training you require. Including, whether you require a transfer of data from other accounting software.

This can be discussed in more detail with one of our Xero advisors.

What Next?

If you are ready to move to the Cloud and streamline your internal accounting function, then please contact one of our Xero advisors. We will be happy to discuss your training needs further. Please telephone  – 0113 218 955 or email savetax@northernaccountants.co.uk

As a Xero Gold Partner, we can guarantee a smooth transition to the cloud!

Northern Accountants (Leeds), Olympus House, 2 Howley Park Business Village, Pullan Way, Leeds, LS27 0BZ