This article answers some of the most frequently asked questions (FAQ) related to expenses and targets Payhawk Accountants.
Can I account for retention payments in Payhawk (for example, Construction Industry Scheme deductions)?
Yes, you can account for retention payments in Payhawk by using a negative line item to represent the withheld amount.
Here's how to structure the expense:
Line Item 1 - Enter the full net amount of the invoice with the appropriate VAT rate code applied.
Line Item 2 - Add a negative line item representing the retention deduction (for example, 11%). Assign this line item no VAT code or a 0% VAT rate.
VAT Amount - The system will calculate the VAT based on Line Item 1 only, ensuring the tax is correctly applied to the gross amount before retention.
Why can't I return an approved expense for editing?
Once an expense has been reviewed and processed by a Payhawk Administrator, it becomes locked and cannot be edited by regular users. Any changes, such as adding an invoice, must be performed by a Payhawk Administrator.