© 2020–2023 1st Money Platform (CY) Ventures. All rights reserved.
 

Cookies help us run our services and make them more tasty. We've posted the full recipe on our Privacy Notice.

Whoa! Wait a minute ... how do I change my cookie settings?

Click "Got it" if you're OK with cookies...

Got it
 

Benefits in kind

 

One time benefit in kind2:56

When your company pays for a benefit that a person uses outside of work, this is considered a "Benefit in kind", and increases the person's tax, but doesn't increase the person's in-the-hand pay. 

In this case, you'll want to add a one time "Benefit in kind" to a person's paystub. 

To learn more: 

  • About how to add a "Benefit in kind" that's added to the person's paystub every payday, watch the video on: Repeating benefit in kind 

To set up a one time "Benefit in kind": 

  1. First, click:
    Menu > Expense claim
     
  2. Select the person who's getting the one time: "Benefit in kind" 
  3. Scroll down, and select: "Benefit in kind" 
  4. In Amount enter how much the "Benefit in kind" is worth. 
  5. When you're finished, click: Next 
  6. Next, you can type a short description of the one time "Benefit in kind", or click: Skip 
  7. You can also attach an image, like a receipt, or click: Skip 
  8. Next, review what you've entered, then when you're ready, click: Save 
  9. And finally, the new one time "Benefit in kind" is now added to the person's next unpaid paystub. 

To see a one time "Benefit in kind" on a person's paystub: 

  1. First, scroll down to:
    Amount
     
  2. Then click: See on paystub 
  3. And finally, now you'll see a new "Benefit in kind" successfully added under: "Benefits in kind ... company arranged" 

And that's it! That's all you need to do to set up a one time "Benefit in kind" for a person! 

"A person's agreed to have money automatically deducted from their paystub to have a company benefit, outside of work. How do I set up the deduction?" 

  1. In the Employee deducted field, enter how much the person's agreed to be deducted, so the person can use this benefit outside of work. 
  2. Above, in the Amount field, enter the total amount. 
  3. Then click: Save 
  4. And finally, the deduction's all set up. 

To see a deduction on a person's paystub: 

  1. First, click: See on paystub 
  2. You'll now see the £20 from before, taken off the person's paystub. 
  3. If you scroll up to "Benefits in kind ... company arranged", you'll see the "Benefit in kind" has been reduced to £80 instead of the £100 that you entered. 
  4. And finally, this is because the person's deduction from their paystub reduced the "Benefit in kind" by £20. 

And that's it! That's all you need to do for deductions so people can use a company benefit outside of work. 

Updated: Sat, Apr 15, 2023.
 

Repeating benefit in kind3:15

When your company pays for a benefit that a person uses outside of work, this is considered a "Benefit in kind". This increases the person's tax, but doesn't increase the person's in-the-hand pay. 

In most cases, you'll want to set it up as a repeating "Benefit in kind", that's added to the person's paystub every payday. 

To learn more: 

To set up a repeating "Benefit in kind": 

  1. First, select the person who's getting the "Benefit in kind"\ on:
    Menu > People
     
  2. To make a new repeat payable, go to:
    Pay > Pay
     
  3. Scroll down to: "Repeat payables ... personal" 
  4. Then click the "Add" button:  
  5. Select: "Benefit in kind" 
  6. In Description you can type a short description of what the "Benefit in kind" is for. 
  7. Next, in Amount enter how much this benefit is worth per year. 
  8. Then click: Save 
  9. And finally, a "Benefit in kind" now shows up on the person's paystub every payday. 

To see a repeating "Benefit in kind" on a person's paystub: 

  1. First, click: See on paystub 
  2. And finally, you'll now see £100 added to the person's paystub under: "Benefits in kind ... company arranged" 

To see how a repeating "Benefit in kind" is calculated: 

  1. First, hover your mouse over the row. 
  2. Then you'll see that the repeating "Benefit in kind" is calculated as a total cash equivalent, per year. 
  3. And then divided by the person's number of paydays in the year. 
  4. And finally, equaling an amount per payday. 

And that's it! That's all you need to do to set up a repeating "Benefit in kind" for a person! 

"A person's agreed to have money automatically deducted from their paystub to have a company benefit, outside of work. How do I set up the deduction?" 

  1. In the Employee deducted field, enter how much the person's agreed to be deducted, so the person can use this benefit outside of work. 
  2. Above, in the Amount field, enter the total amount. 
  3. Then click: Save 
  4. And finally, the deduction's all set up. 

To see a deduction on a person's paystub: 

  1. First, click: See on paystub 
  2. You'll now see the £20 from before, taken off the person's paystub. 
  3. If you scroll up to "Benefits in kind ... company arranged", you'll see the "Benefit in kind" has been reduced to £80 instead of the £100 that you entered. 
  4. And finally, this is because the person's deduction from their paystub reduced the "Benefit in kind" by £20. 

And that's it! That's all you need to do for deductions so people can use a company benefit outside of work. 

Updated: Sat, Apr 15, 2023.
 

Deductions for benefit in kind1:04

"A person's agreed to have money automatically deducted from their paystub to have a company benefit, outside of work. How do I set up the deduction?" 

  1. In the Employee deducted field, enter how much the person's agreed to be deducted, so the person can use this benefit outside of work. 
  2. Above, in the Amount field, enter the total amount. 
  3. Then click: Save 
  4. And finally, the deduction's all set up. 

To see a deduction on a person's paystub: 

  1. First, click: See on paystub 
  2. You'll now see the £20 from before, taken off the person's paystub. 
  3. If you scroll up to "Benefits in kind ... company arranged", you'll see the "Benefit in kind" has been reduced to £80 instead of the £100 that you entered. 
  4. And finally, this is because the person's deduction from their paystub reduced the "Benefit in kind" by £20. 

And that's it! That's all you need to do for deductions so people can use a company benefit outside of work. 

Updated: Sat, Apr 15, 2023.

© 2020–2023 1st Money Platform (CY) Ventures. All rights reserved.
www.1st.money/help/Expenses/Benefits_in_kind/