Payroll

New NHS pension legislation applicable from 1^st April 2025

You will need to download and install Sage 50 Payroll V31.00.236.

For Employees on an NHS pension scheme, their contribution rate depends on what tier their salary fits in.  The salary value of these tiers, and the contribution rate percentages may change on 1^st April each year.

SAGE were not sent the information in time to include the normal year end update.  Instead, the background update to v31.00.236 allows you to enter the legislation.

Solution

The updated NHS pension legislation that applies retrospectively from 1^st April 2025 onwards is now available.

NOTE If you have already processed a payroll for 1^st April or after using the old legislation, it is recommended that you reprocess it.

Enter new legislation

Follow the steps below to add the new NHS pension legislation values to your software:

1. Select Payroll, then Change Process Date.
2. Set the process date to 01/04/2025 then select OK.
3. Select Company, then Legislation.
4. Go to the NHS Pension
5. Click Add Date enter the date 01/04/2025, then click OK.
6. Click the drop-down option to the right of Effective from and select 01/04/2025.

This is essential to ensure you edit the correct legislation values.

7. Enter the relevant Band To values and check the rates are correct. Your software adds the Band From value automatically.

NOTE: check that you have entered these correctly, as a mistake here can affect your employees’ tier and/or contributions.

8. Select OK.
9. On your employees list, select any of your employees on the NHS pension scheme.
10. Select Payroll, then NHS Pension Tiers.
11. Select Save, this step refreshes the calculations bases on the new legislation values you entered.

If you need updating the new NHS Pension legislation values or need any other help or advice with your payroll, please contact us

We can also provide a remote access service where we can link into your computer to help you resolve your Sage Accounts or Payroll problems.

Sage 50 Accounts

Writing Off Customer Bad Debts

Sometimes you might need to write off outstanding transactions on a customer’s account, for example if they cease trading.  If this happens, the total balance on their account is transferred to a Bad Debt Write Off nominal code, this changes the debtors figure on the Balance Sheet report, and the amount written off is set against this year’s profit and loss as an overhead.

To create a Bad Debt Write Off nominal code

If you are using the Sage default nominal code structure you will already have a nominal code for Bad Debt Write Off, 8100 by default.  If you have deleted this account, or created you own nominal structure and have not created a Bad Debt Write Off nominal code, you will need to create one before proceeding.

1. Nominal codes > New/edit
2. Enter the number you want to use for the Bad Debt Write Off nominal code, for example, 8100.

Note: this should be within the Overhead section of the Profit and Loss report.

1. Enter the name of the account, for example, Bad Debt Write Off.

2 Save > Close.

Writing off a bad debt

We will firstly assume that the customer has a positive balance, therefore we need to post a credit note.

1. Customers > Batch credit
2. Enter the relevant customer information.
3. A/C – Customer A/c code
4. Date – Date of write off.
5. Credit No. – Bad Debt
6. N/C – 8100
7. Details – Bad Debt Write Off
8. Net – Net amount of bad debt (if you do not know the net amount enter the gross amount and click F9 to calculate the Net amount.
9. T/C – T1
10. VAT – check the Vat has been calculated correctly or type in the correct VAT figure.
11. Save >

If the customer has overpaid i.e. the customer has a negative balance, therefore we need to post a sales invoice.

1. Customers > Batch invoice
2. Enter the relevant customer information.
3. A/C – Customer A/c code
4. Date – Date of write off.
5. Ref – Bad Debt
6. N/C – 8100
7. Details – Bad Debt Write Off
8. Net – enter the amount of the overpayment to be written off.
9. T/C – T9
10. Save > Close.

You have now posted the invoice to write off the debt.

You now need to allocate all the outstanding transactions on the customer’s account.

1. Customers > Customer receipt
2. Select the relevant customer.
3. Enter the relevant date you want to allocate the bad debt write off.
4. Allocate the invoices/credit notes/Sales on account against each other as required.

If you would help writing off customer bad debts or customer over payments or need any other help with your Sage 50 Accounts, please contact us