Tide accounts come packed with smart and time-saving tools, letting you focus less on admin and more on your business.
Go to:
Full UK sort code and account number
Business Mastercard, with free purchases at home and abroad
Automatic categorisation of your transactions, for easy accounting
Instant invoice payment and creation
Up to £150,000 of credit, straight through the app
That’s just the beginning! You can see more on our features page.
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.
