If you have some employees who are assessed to be inside of the IR35 rules and are classed as deemed employees, to ensure that your nominal link journals are correct, you should assign the employees to a specific department then set up departmental overrides. This means that, in your accounts software, the deemed employees' gross and net wages are sent to a separate nominal code to the rest of your employees.

To set up departmental overrides for any deemed employees, follow the steps below:

1. Set up and assign the employees to a new department >
2. Click Company then click Nominal Settings.
3. In the Override by drop-down list, click Department.
4. Click the P&L Analysis tab then click Departmental Override.
5. Select the relevant department then click Edit.
6. Next to Payments, enter the nominal code you've set up in accounts, for example, 2103.
7. Click OK then click Close.
8. Click the BS Analysis tab then click Departmental Override.
9. Select the relevant department then click Edit.
10. Next to Net Wages, enter the nominal code you've set up in accounts, for example, 2103.
11. Click OK then click Close then click OK.

You can now post the nominal link to accounts. The gross and net wages for your deemed employees will post to the new nominal code so appear separate to the rest of your employees.