Assets transferred

1:00 When the company gifts or sells an asset to an employee, it's considered a "Benefit in kind", and increases the employee's taxable pay, but doesn't increase the employee's in-the-hand pay.

To record this:

1. Add a "Benefit in kind" expense.
2. Keep "Arranged by" as: "Company"

This way the asset's value is taxed by Income Tax (PAYE) correctly.

Note: If the employee bought the asset, or paid the employer for the asset, enter how much the employee paid in: "Employee deducted"

See also...

• Read more from HMRC: Expenses and benefits: assets bought, sold or given

When the company buys an asset from an employee, the buying price of the asset is tax-free.

To record this:

1. Add a "Once only tax-free benefit" expense.

This way, no tax is deducted for the asset's value.

Asset bought for more than market value

If the company buys an asset from an employee for more than it's market value, the amount over the market value is taxable.

To record this amount:

1. Do the steps above to record the amount up to the market value.
2. Also add a "Once only taxable benefit" expense for the amount over the market value.

This way the amount over the market value is taxed by both Income Tax (PAYE) and National Insurance.

See also...

• Read more from HMRC: Expenses and benefits: assets bought, sold or given