200 |
Sales Revenue |
Income |
20% (VAT on Income) |
Revenue from typical business operations |
260 |
Other Revenue |
Revenue |
20% (VAT on Income) |
Income from non-standard and non-recurring activities |
270 |
Interest Income |
Revenue |
No VAT |
Total interest income received |
310 |
Cost of Goods Sold |
Direct Cost |
20% (VAT on Expenses) |
Purchases directly related to sales, such as stock items that you are reselling or the materials needed to produce a product. |
320 |
Direct Wages |
Direct Cost |
No VAT |
Wage costs for subcontractors hired to assist directly with sales. Note the difference between code 477, which is a more general code for employee salaries. |
321 |
Subcontractors |
Direct Cost |
20% (VAT on Expenses) |
This code relates to labour costs on subcontractor bills. |
325 |
Direct Expenses |
Direct Cost |
20% (VAT on Expenses) |
Costs directly associated with generating revenue |
400 |
Advertising & Marketing |
Overhead |
20% (VAT on Expenses) |
Expenses for promoting your business, including marketing spend, branding, events etc. |
401 |
Audit & Accountancy fees |
Overhead |
20% (VAT on Expenses) |
Accountant fees and associated accounting software costs. |
404 |
Bank Fees |
Overhead |
No VAT |
Charges from the bank excluding interest charges. |
408 |
Cleaning |
Overhead |
20% (VAT on Expenses) |
Professional cleaning fees for your business premises |
412 |
Consulting |
Overhead |
20% (VAT on Expenses) |
Payments made to professional consultants for their services |
416 |
Depreciation Expense |
Overhead |
No VAT |
Annual depreciation value of assets over their useful life |
418 |
Charitable and Political |
Overhead |
No VAT |
Donations to charitable organisations or political entities |
420 |
Entertainment-100% business |
Overhead |
20% (VAT on Expenses) |
Fully deductible business entertainment expenses for staff |
424 |
Entertainment - 0% |
Overhead |
No VAT |
Non-deductible entertainment costs for clients |
425 |
Postage, Freight & Courier |
Overhead |
Exempt Expenses |
Costs of postage, freight, and courier services for your business |
429 |
General Expenses |
Overhead |
20% (VAT on Expenses) |
General operational expenses. Only choose this if no other code is suitable |
433 |
Insurance |
Overhead |
Exempt Expenses |
Insurance premiums for business assets |
437 |
Interest Paid |
Overhead |
No VAT |
Interest expenses on business loans and credit |
441 |
Legal Expenses |
Overhead |
20% (VAT on Expenses) |
Costs for legal services and advice relating to your business |
445 |
Light, Power, Heating |
Overhead |
5% (VAT on Expenses) |
Utility expenses for lighting, power, and heating (business premises only) |
449 |
Motor Vehicle Expenses |
Overhead |
20% (VAT on Expenses) |
Costs associated with operating business vehicles |
457 |
Operating Lease Payments |
Overhead |
20% (VAT on Expenses) |
Expenses for leasing office space and vehicles (excluding hire purchases) |
461 |
Printing & Stationery |
Overhead |
20% (VAT on Expenses) |
Costs of printing services and office supplies |
463 |
IT Software and Consumables |
Overhead |
20% (VAT on Expenses) |
Expenses on software and IT consumables |
465 |
Rates |
Overhead |
20% (VAT on Expenses) |
Payments to local councils for business rates |
469 |
Rent |
Overhead |
20% (VAT on Expenses) |
Leasing costs for buildings or office space |
473 |
Repairs & Maintenance |
Overhead |
20% (VAT on Expenses) |
Costs of repairing and maintaining business assets |
477 |
Salaries |
Overhead |
No VAT |
Payments to employees for their services |
478 |
Directors' Remuneration |
Overhead |
No VAT |
Payments made to company directors |
479 |
Employers National Insurance |
Overhead |
No VAT |
Business contributions to National Insurance |
480 |
Staff Training |
Overhead |
20% (VAT on Expenses) |
Costs related to employee training programs |
482 |
Pensions Costs |
Overhead |
No VAT |
Contributions to pension schemes |
483 |
Medical Insurance |
Overhead |
Exempt Expenses |
Premiums for employee medical insurance |
485 |
Subscriptions |
Overhead |
Exempt Expenses |
Subscriptions to trade bodies, magazines etc. |
489 |
Telephone & Internet |
Overhead |
20% (VAT on Expenses) |
Costs of business-related telephone and internet services |
493 |
Travel - National |
Overhead |
20% (VAT on Expenses) |
Expenses for domestic business travel |
494 |
Travel - International |
Overhead |
No VAT |
Costs incurred from international business trips |
500 |
Corporation Tax |
Overhead |
No VAT |
Taxes on company profits, paid to HMRC |
610 |
Accounts Receivable |
Current Asset |
No VAT |
Outstanding invoices issued by the business |
611 |
Less Provision for Doubtful Debts |
Current Asset |
No VAT |
Allowance for potentially uncollectible receivables |
620 |
Prepayments |
Current Asset |
No VAT |
Advance payments for future expenses |
630 |
Inventory |
Current Asset |
No VAT |
Value of goods held for resale |
710 |
Office Equipment |
Fixed Asset |
20% (VAT on Expenses) |
Office equipment owned by the business |
711 |
Less Accumulated Depreciation on Office Equipment |
Fixed Asset |
No VAT |
Depreciation value of office equipment over its useful life |
720 |
Computer Equipment |
Fixed Asset |
20% (VAT on Expenses) |
Computer hardware owned by the business |
721 |
Less Accumulated Depreciation on Computer Equipment |
Fixed Asset |
No VAT |
Depreciation value of computer equipment over its useful life |
740 |
Buildings |
Fixed Asset |
20% (VAT on Expenses) |
Business-owned buildings |
741 |
Less Accumulated Depreciation on Buildings |
Fixed Asset |
No VAT |
Depreciation value of buildings over their useful life |
750 |
Leasehold Improvements |
Fixed Asset |
20% (VAT on Expenses) |
Enhancements to leased property the business owns |
751 |
Less Accumulated Depreciation on Leasehold Improvements |
Fixed Asset |
No VAT |
Depreciation value of leasehold improvements over their useful life |
760 |
Motor Vehicles |
Fixed Asset |
20% (VAT on Expenses) |
Vehicles owned by the business |
761 |
Less Accumulated Depreciation on Motor Vehicles |
Fixed Asset |
No VAT |
Depreciation value of motor vehicles over their useful life |
764 |
Plant & Machinery |
Fixed Asset |
20% (VAT on Expenses) |
Machinery and equipment (eg. appliances, office furniture, fixtures and fittings) owned by the business |
765 |
Less Accumulated Depreciation on Plant and Machinery |
Fixed Asset |
No VAT |
Depreciation value of plant and machinery over their useful life |
770 |
Intangibles |
Fixed Asset |
20% (VAT on Expenses) |
Non-physical assets like goodwill and intellectual property rights such as patents, copyrights and trademarks |
771 |
Less Accumulated Amortisation on Intangibles |
Fixed Asset |
No VAT |
Amortisation (costs written off) of intangible assets over their useful life |
800 |
Accounts Payable |
Current Liability |
No VAT |
Outstanding invoices from suppliers |
805 |
Accruals |
Current Liability |
No VAT |
Uninvoiced services received by the business |
810 |
Income in Advance |
Current Liability |
20% (VAT on Income) |
Income received for goods or services not yet provided |
811 |
Credit Card Control Account |
Current Liability |
No VAT |
Amounts owed on company credit cards |
814 |
Wages Payable - Payroll |
Current Liability |
No VAT |
Net wages allocated to employees for each payroll run |
815 |
Employee Contribution to Benefits |
Current Liability |
No VAT |
Payroll deductions for employee contributions towards benefits in kind |
820 |
VAT |
Current Liability |
No VAT |
VAT balance owing to or from HMRC |
825 |
PAYE Payable |
Current Liability |
No VAT |
PAYE tax amount due to HMRC |
826 |
NIC Payable |
Current Liability |
No VAT |
Business's portion of National Insurance Contribution due to HMRC |
830 |
Provision for Corporation Tax |
Current Liability |
No VAT |
Corporation tax due to HMRC |
835 |
Directors' Loan Account |
Current Liability |
No VAT |
Loans owed to or from company directors |
840 |
Historical Adjustment |
Current Liability |
No VAT |
Adjustments for accounting and starting balances (used when credit and debit values don’t match due to currency conversion or other mismatches) |
850 |
Suspense |
Current Liability |
No VAT |
Temporary holding account, transactions must be allocated to a different code when their purpose is known |
858 |
Pensions Payable |
Current Liability |
No VAT |
Outstanding payroll pension amounts |
860 |
Rounding |
Current Liability |
No VAT |
Adjustments for rounding differences from Xero and other financial programs |
868 |
Earnings Orders Payable |
Current Liability |
No VAT |
Payroll earnings orders due for liabilities such as civil debts or child support payments |
877 |
Tracking Transfers |
Current Liability |
No VAT |
Transfers between tracking categories (when you create a journal that affects a tracking category's balance, but don't change the source transaction) |
900 |
Loan |
Non-current Liability |
No VAT |
Loans from creditors (eg. bank loans) |
910 |
Hire Purchase Loan |
Non-current Liability |
No VAT |
Goods acquired through hire purchase agreements |
920 |
Deferred Tax |
Non-current Liability |
No VAT |
Timing differences between taxable profits and accounting profits |
947 |
Student Loan Deductions Payable |
Current Liability |
No VAT |
Payroll deductions for student loans |
950 |
Capital - x,xxx Ordinary Shares |
Equity |
No VAT |
Paid-up share capital |
960 |
Retained Earnings |
Equity |
No VAT |
Retained earnings (net profit or loss values from previous years) |
970 |
Owner A Funds Introduced |
Equity |
No VAT |
Owner's financial contributions to the business |
980 |
Owner A Drawings |
Equity |
No VAT |
Withdrawals by the owner |