A memorandum of association is a legal statement signed by all initial shareholders agreeing to form the company. It confirms that all parties involved wish to form a company and agree to take at least one share. Tide will automatically create a memorandum of association for you when you register your company through our service. If you have formed a company and are looking for your memorandum of association, it is available on the Companies House register.
Go to:
‘Admin’ > ‘Payroll’ > select the current pay period and an employee > ‘Add pay item’ > add the salary advance amount > type in ‘Salary advance’ in the ‘Description’ field, and save the changes
Then in the next month’s pay run:
‘Admin’ > ‘Payroll’ > select the current pay period and the same employee > ‘Add pay item’ > add the salary advance as a negative value > fill in the ‘Description field, and save.
For example, if the salary advance is £2,000 – you’ll need to add the negative amount of £-2,000.
Note: Salary advances are typically adjusted in the following month's payroll, but can be done at another time, depending on your agreement with the employee.
A salary advance is not a loan – there is no interest charged to the employee. Salary advances are taxed like regular income.
If the salary advance you’ve paid to an employee for a year is more than £10,000, HMRC may consider them as a Benefit in Kind, meaning you’ll need to report this in a P11D form.
