Chart of Accounts
ZZ ledger 028
All accounts as at 5 June 2018
Code Account Name Type Tax
200 Sales Revenue 20% (VAT on Income)
Income from any normal business activity
260 Other Revenue Revenue 20% (VAT on Income)
Any other income that does not relate to
normal business activity and is not recurring
270 Interest Income Revenue No VAT
Gross interest income
310 Cost of Goods Sold Direct Cost 20% (VAT on Expenses)
Cost of goods sold by the business
320 Direct Wages Direct Cost No VAT
Payment of wages/salary to an employee
whose work can be directly linked to the
product or service
325 Direct Expenses Direct Cost 20% (VAT on Expenses)
Expenses incurred that relate directly to
earning revenue
400 Advertising & Marketing Overhead 20% (VAT on Expenses)
Expenses incurred for advertising and
marketing
401 Audit & Accountancy fees Overhead 20% (VAT on Expenses)
Expenses incurred relating to accounting and
audit fees
404 Bank Fees Overhead No VAT
Fees charged by your bank for transactions
regarding your bank account(s)
408 Cleaning Overhead 20% (VAT on Expenses)
Expenses incurred for cleaning business
property
412 Consulting Overhead 20% (VAT on Expenses)
Payments made to consultants
416 Depreciation Expense Overhead No VAT
The amount of the asset's cost (based on the
useful life) that was consumed during the
period
418 Charitable and Political Donations Overhead No VAT
Payments made to charities or political
organisations or events
420 Entertainment-100% business Overhead 20% (VAT on Expenses)
Expenses incurred on entertainment by the
business that for income tax purposes are fully
deductable
424 Entertainment - 0% Overhead No VAT
Expenses incurred on entertainment by the
business that for income tax purposes are not
fully deductable
425 Postage, Freight & Courier Overhead Exempt Expenses
Expenses incurred by the entity on postage,
freight & courier costs
429 General Expenses Overhead 20% (VAT on Expenses)
Expenses incurred that relate to the general
running of the business
433 Insurance Overhead Exempt Expenses
Expenses incurred for insuring the business'
assets
437 Interest Paid Overhead No VAT
Interest paid on a business bank account or
credit card account
441 Legal Expenses Overhead 20% (VAT on Expenses)
Expenses incurred on any legal matters
445 Light, Power, Heating Overhead 5% (VAT on Expenses)
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Chart of Accounts
Code Account Name Type Tax
Expenses incurred for lighting, power or
heating the business premises
449 Motor Vehicle Expenses Overhead 20% (VAT on Expenses)
Expenses incurred on the running of business
motor vehicles
457 Operating Lease Payments Overhead 20% (VAT on Expenses)
Expenses incurred on operating expenses
such as office rental and vehicle leases
(excludes hire purchase agreements)
461 Printing & Stationery Overhead 20% (VAT on Expenses)
Expenses incurred on printing and stationery
463 IT Software and Consumables Overhead 20% (VAT on Expenses)
Expenses incurred on software or computer
consumables
465 Rates Overhead 20% (VAT on Expenses)
Payments made to local council for rates
469 Rent Overhead 20% (VAT on Expenses)
Payments made to lease a building or area
473 Repairs & Maintenance Overhead 20% (VAT on Expenses)
Expenses incurred on a damaged or run down
asset that will bring the asset back to its
original condition
477 Salaries Overhead No VAT
Payment to employees in exchange for their
resources
478 Directors' Remuneration Overhead No VAT
Payments to company directors in exchange
for their resources
479 Employers National Insurance Overhead No VAT
Payment made for National Insurance
contributions - business contribution only
480 Staff Training Overhead 20% (VAT on Expenses)
Expenses incurred in relation to training staff
482 Pensions Costs Overhead No VAT
Payments made to pension schemes
483 Medical Insurance Overhead Exempt Expenses
Payments made to medical insurance schemes
485 Subscriptions Overhead Exempt Expenses
Expenses incurred by the business in relation
to subscriptions, such as magazines and
professional bodies
489 Telephone & Internet Overhead 20% (VAT on Expenses)
Expenses incurred from any business-related
phone calls, phone lines, or internet
connections
493 Travel - National Overhead 20% (VAT on Expenses)
Expenses incurred from any domestic
business travel
494 Travel - International Overhead No VAT
Expenses incurred from any international
business travel
497 Bank Revaluations Expense No VAT
Bank account revaluations due for foreign
exchange rate changes
498 Unrealised Currency Gains Expense No VAT
Unrealised currency gains on outstanding
items
499 Realised Currency Gains Expense No VAT
Gains or losses made due to currency
exchange rate changes
500 Corporation Tax Overhead No VAT
Tax payable on business profits
610 Accounts Receivable Current Asset No VAT
Invoices the business has issued but has not
yet collected payment on
611 Less Provision for Doubtful Debts Current Asset No VAT
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Chart of Accounts
Code Account Name Type Tax
A provision anticipating that a portion of
accounts receivable will never be collected
620 Prepayments Current Asset No VAT
An expenditure that has been paid for in
advance
630 Inventory Current Asset No VAT
Value of tracked items for resale.
710 Office Equipment Fixed Asset 20% (VAT on Expenses)
Office equipment that is owned and
controlled by the business
711 Less Accumulated Depreciation on Fixed Asset No VAT
Office Equipment
The total amount of office equipment costs
that has been consumed by the business
(based on the useful life)
720 Computer Equipment Fixed Asset 20% (VAT on Expenses)
Computer equipment that is owned and
controlled by the business
721 Less Accumulated Depreciation on Fixed Asset No VAT
Computer Equipment
The total amount of computer equipment
costs that has been consumed by the business
(based on the useful life)
740 Buildings Fixed Asset 20% (VAT on Expenses)
Buildings that are owned and controlled by
the business
741 Less Accumulated Depreciation on Fixed Asset No VAT
Buildings
The total amount of buildings costs that have
been consumed by the business (based on the
useful life)
750 Leasehold Improvements Fixed Asset 20% (VAT on Expenses)
The value added to the leased premises via
improvements
751 Less Accumulated Depreciation on Fixed Asset No VAT
Leasehold Improvements
The total amount of leasehold improvement
costs that has been consumed by the business
(based on the useful life)
760 Motor Vehicles Fixed Asset 20% (VAT on Expenses)
Motor vehicles that are owned and controlled
by the business
761 Less Accumulated Depreciation on Fixed Asset No VAT
Motor Vehicles
The total amount of motor vehicle costs that
has been consumed by the business (based on
the useful life)
764 Plant & Machinery Fixed Asset 20% (VAT on Expenses)
Plant and machinery that are owned and
controlled by the business
765 Less Accumulated Depreciation on Fixed Asset No VAT
Plant and Machinery
The total amount of plant and machinery cost
that has been consumed by the business
(based on the useful life)
770 Intangibles Fixed Asset 20% (VAT on Expenses)
Assets with no physical presence e.g. goodwill
or patents
771 Less Accumulated Amortisation on Fixed Asset No VAT
Intangibles
The total amount of intangibles that have
been consumed by the business
800 Accounts Payable Current Liability No VAT
Invoices the company has received from
suppliers but have not made payment on
801 Unpaid Expense Claims Current Liability No VAT
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Chart of Accounts
Code Account Name Type Tax
Expense claims typically made by
employees/shareholder employees which the
business has not made payment on
803 Wages Payable Current Liability No VAT
Xero automatically updates this account for
payroll entries created using Payroll and will
store the payroll amount to be paid to the
employee for the pay run. This account
enables you to maintain separate accounts for
employee Wages Payable amounts and
Accounts Payable amounts
805 Accruals Current Liability No VAT
Any services the business has received but
have not yet been invoiced for e.g.
Accountancy Fees
810 Income in Advance Current Liability 20% (VAT on Income)
Any income the business has received but
have not provided the goods or services for
811 Credit Card Control Account Current Liability No VAT
The amount owing on the company's credit
cards
814 Wages Payable - Payroll Current Liability No VAT
Where this account is set as the nominated
Wages Payable account within Payroll
Settings, Xero allocates the net wage amount
of each pay run created using Payroll to this
account
820 VAT Current Liability No VAT
The balance in this account represents VAT
owing to or from the HMRC. At the end of the
VAT period, it is this account that should be
used to code against either the ‘refunds from’
or ‘payments to’ the HMRC that will appear on
the bank statement. Xero has been designed
to use only one VAT account to track VAT on
income and expenses, so there is no need to
add any new VAT accounts to Xero
825 PAYE Payable Current Liability No VAT
The Amount of PAYE tax due to be paid to the
HMRC
826 NIC Payable Current Liability No VAT
The amount of a business' portion of National
Insurance Contribution that is due to be paid
to the HMRC
830 Provision for Corporation Tax Current Liability No VAT
Corporation tax payable to the HMRC
835 Directors' Loan Account Current Liability No VAT
Monies owed to or from company directors
840 Historical Adjustment Current Liability No VAT
For any accounting and starting balance
adjustments
850 Suspense Current Liability No VAT
A clearing account
858 Pensions Payable Current Liability No VAT
Payroll pension payable account
860 Rounding Current Liability No VAT
An adjustment entry to allow for rounding
868 Earnings Orders Payable Current Liability No VAT
Payroll earnings order account
877 Tracking Transfers Current Liability No VAT
Transfers between tracking categories
900 Loan Non-current Liability No VAT
Any money that has been borrowed from a
creditor
910 Hire Purchase Loan Non-current Liability No VAT
Any goods bought through hire purchase
agreements
920 Deferred Tax Non-current Liability No VAT
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Chart of Accounts
Code Account Name Type Tax
Used if there is a timing difference between
taxable profits and accounting profits
947 Student Loan Deductions Payable Current Liability No VAT
Payroll student loan deductions payable
account
950 Capital - x,xxx Ordinary Shares Equity No VAT
Paid up capital
960 Retained Earnings Equity No VAT
Do not Use
970 Owner A Funds Introduced Equity No VAT
Funds contributed by the owner
980 Owner A Drawings Equity No VAT
Withdrawals by the owners
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