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C. Vouchers and credit cards

Giving vouchers to employees2:23
Giving vouchers to employees
Personal purchases on a company credit card2:17
Personal purchases on a company credit card
2 videos, with a playing time of 4 minutes


 

Giving vouchers to employees2:25

"If vouchers are given to an employee, how's it recorded?"

When the company gives employees a voucher, it needs to be recorded as a: "Benefit-in-kind"

To record a voucher given to an employee by a company:

  1. First, tap: MenuExpense claim
  2. Select the person who's been given the voucher.
  3. Next, tap: Benefit-in-kind
  4. If you've got an image, like a receipt, that you'd like to include, you can upload, or take a photo of it.
  5. Then tap: Next
  6. Type in the value of the voucher.
  7. Set "Arranged by" to: "Employee"
  8. Optionally, if there's a co-pay, or an amount that the person's agreed can be taken off their pay, enter that also in: Employee deducted co-pay
  9. Then tap: Next
  10. Optionally, type in a short description about the voucher, and tap: Next
  11. And because it's a payroll admin who's entering it, the expense is automatically approved.
  12. Now, to see how it shows up on the person's paystub, scroll down and tap: See on paystub
  13. And when you hover your mouse over the "Benefit-in-kind" amount, you'll see the details.
  14. There may have been a co-pay, or an amount that the person's agreed can be taken off their pay. If so, you'll also see that amount showing as "Employee deducted co-pay" with its own notes when you hover.
  15. And finally, you'll know that the voucher's value is being correctly recorded and taxed.

Keep in mind that:

  • The co-pay amount is automatically set to be deducted from the person's pay.
  • The company doesn't have to separately collect the co-pay amount from the person.
  • Also, there's no difference in the treatment of vouchers that're exchangeable for goods and services, compared to vouchers that're exchangeable for cash only.

To learn more:

  • About non-cash vouchers, go to GOV.UK.

And that's it! That's everything you need to know about how to record a voucher given to an employee by a company!

Updated: Fri, Nov 3, 2023.
 

Personal purchases on a company credit card2:17

"How do I record employee personal items bought on a company card?"

When an employee buys personal items on a company credit card, it's normally recorded as a: "Benefit-in-kind"

To record a benefit-in-kind when an employee buys personal items on a company credit card:

  1. First, tap: MenuExpense claim
  2. Select the person who used a company credit card to buy personal items.
  3. Then tap: Benefit-in-kind
  4. You can attach an image, like a receipt, or tap: Skip image
  5. Type in how much was spent by the employee.
  6. Set "Arranged by" to "Employee", and tap: Next
  7. Next, type in a short description of what was purchased, and tap: Next
  8. And because it's a payroll admin who's entering it, the expense is automatically approved.
  9. Now, to see how it shows up on the person's paystub, scroll down and tap: See on paystub
  10. And when you hover your mouse over the "Benefit-in-kind" amount, you'll see the details.
  11. And finally, you'll know that the purchased items' value is being correctly recorded and taxed.

Keep in mind that:

  • Recording an employee's personal items purchases applies equally to those done with a company debit card, or other company charge card.
  • Also, it applies equally whether the company approved of the purchase or not.
  • However, in most cases, the employee's company credit card purchase was for approved business purposes, like business travel, and not for personal items.
  • For any business related purchase, using a company credit card, nothing needs to be recorded in their payroll.

To learn more:

  • About which purchases are exempt, go to GOV.UK.

And that's it! That's everything you need to know about what to do when an employee buys personal items on a company credit card!

Updated: Fri, Nov 10, 2023.

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www.1st.money/help/Expenses/C._Vouchers_and_credit_cards/