Account for Job Retention Scheme income in Sage 50 Accounts

How the scheme works

If you're an employer who had staff who were unable to work due to the coronavirus and have asked your employees to stop working, but you haven't made them redundant, then you can apply to HMRC to help pay their salaries under the Coronavirus Job Retention Scheme (CJRS) - also known as the Furlough scheme.

In the March 2021 Budget, the Government announced that the scheme has been extended until the end of September 2021. Read more >  

The deadline for final claims under the scheme was14 October 2021.

You can find out more about the scheme in our Job Retention Scheme FAQs guide.

Create new nominal codes to record grants

We recommend you create the following new nominal codes to record when you make Job Retention Scheme claims and when grants are received, unless otherwise advised by your accountant. This will help you when reconciling any grant income received.

1. On the navigation bar click Nominal codes then click New/edit.
2. Complete the Nominal Record window as follows:

   N/C	Enter the nominal code number you want to create, for example, 1150.
   Name	Enter the name of the account, for example, Job Retention Scheme Accrued Income.

3. Click Save then click Close.
4. Repeat this process to create the second nominal code.

TIP: If not already included, you must add your new nominal codes to your existing chart of accounts. If preferred, you can show coronavirus grants as a separate category on your profit and loss.

Record grants claimed

NOTE: There's no change to how you record your payroll postings in Sage 50 Accounts. You should continue to run your Nominal Link or post salary journals as normal.

You should record each claim you make as a journal entry, to post a debit for accrued income on the balance sheet under Debtors, and a credit on the profit and loss under Other Sales.

For the purposes of this section we'll use the following example:

• The company makes a claim for £12,500 on 10 April 2020.
• No grant has yet been received.
• In this example, we're using the non-vatable tax code, T9.*

1. On the navigation bar click Nominal codes then click Journal entry.
2. In Reference, enter a reference, then in Posting Date enter the date of the claim.
3. Enter the following information to record the accrued income:
   

   N/C	Name	Details	T/C	Debit	Credit
   1150	Job Retention Scheme Accrued Income	Job Retention Scheme claim	T9	12500.00
   4950	Job Retention Scheme grant received	Job Retention Scheme claim	T9		12500.00

4. Click Save then click Close.

Record grants received

You should record grants received as a bank receipt to the Job Retention Scheme Accrued Income nominal code. This increases your bank account balance and reduces the accrued income balance.

For the purposes of this section we'll use the following example:

• A government grant for £12,500 is received on 20 April 2020.
• The grant is received into the company current account, nominal code 1200.
• In this example, we're using the non-vatable tax code, T9.*

1. Click Bank accounts, click Receipts then click Bank receipt.
2. Complete the Bank receipts window as follows:
   

   Bank	Date	N/C	Details	Net	T/C	Tax
   1200	20/04/2020	1150	Job Retention Scheme grant received	12500.00	T9	0.00

3. Click Save then click Close.

Additional questions you may have

To help support you, we've put together a handy Coronavirus Job Retention Scheme FAQs guide.