"How do I record company provided items for employee personal use?"
When your company provides other items for an employee, it's considered a "Benefit-in-kind". Examples of other items include subscriptions, professional fees, and more. However, some other item benefits are exempt.
To learn more:
- About which other item benefits are exempt, go to GOV.UK.
- If the other item benefit you're providing IS EXEMPT, go ahead and provide the benefit tax-free. In other words, there's nothing to set for the employee's pay.
- However, if it's NOT EXEMPT you'll need to add it as a repeating: "Benefit-in-kind"
To add other item benefits to an employee's pay, as a repeating "Benefit-in-kind":
- First, select the person who's getting the other item benefits on: MenuPeople
- To make a new repeat payable, go to: PayPay settings
- And scroll down to the "Repeat payables ... personal" heading.
- Then click: New repeat payable
- Next, select: Benefit-in-kind
- Next, type in a Description of the benefit-in-kind.
- Select the yearly time frame: Amount type
- And then type in the yearly cost: Amount
- By default, "Arranged by" is already set to: "Company"
- Then click: Save
- Then on the repeat payable list, hover your mouse over the repeat payable, and click the "See on paystub" button:
- You'll now see an amount showing under: "Benefits in kind ... company arranged"
- And if you hover your mouse over the amount, you'll see a breakdown of the calculation.
- Then if you click the "Next paystub" circle, you'll see the same amount repeated on every payday. Including: "Benefit-in-kind"
- If you later decide you want to remove, or stop the repeating "Benefit-in-kind", click its "Edit" button:
- And finally, you can change any part of it, including changing the "Ends on" date to finish earlier, if required.
Keep in mind that:
- In some cases, the employee has themselves paid for the other items benefit cost, and is asking the company for a once-only reimbursement.
- To add a "Once only taxable benefit" reimbursement, click: MenuExpense claim, select the person, and click: Once only taxable benefit
To also learn more:
- About other item benefits, go to GOV.UK.
And that's it! That's all you need to do to add an employee's other item benefits!