Expenses for vehicles







1. How do I setup a company vehicle for private use by an employee?
3:46
"My company's agreed for a person to drive a company vehicle for private purposes, or in other words, a: "Benefit in kind""
"This increases the person's taxable pay, but doesn't increase the person's in-the-hand pay."
"How do I set up a "Company vehicle" repeat payable for the person?"
To set up a "Company vehicle" benefit:
- First, select the pay batch that'll store the benefit on:
Menu > Pay batches - To make a new repeat payable, navigate to Pay > Repeat payables
- Then click:
New repeat payable - Select: Company vehicle ... private use
- If this vehicle is a van, then click Vehicle type, and select: Van
- Next, enter the vehicle's Make and model
- Next, type in your vehicle's License plate
- Keep going, and enter the vehicle's Purchase price + accessories, then enter the vehicle's Date first registered
- Scroll down to: Fuel
- If you know your vehicle's CO2 emissions, enter it.
- Otherwise, if you don't know your vehicle's CO2 emissions, you can look it up using your vehicle's license plate.
- To do this, click the "Lookup CO2 emissions" link underneath.
- This'll take you to the government vehicle enquiry website.
- Type in your vehicle's license plate, then click: Continue
- Click Yes, then: Continue
- If you scroll down, you'll see your vehicle's CO2 emissions, date of first registration, engine size, and more.
- Now that you have your vehicle's CO2 emissions, go back to 1st Money, and type it in.
- Next, to add the people who'll be using this vehicle, scroll down.
- Click Add people, and select the people to add. Multiple people can be added.
- Then click: Save
- The vehicle benefit has been created and shared with the selected people.
- And now, you'll see the percentage of this vehicle benefit that each person gets.
- And finally, this vehicle benefit now shows up on each person's next unpaid paystub. It won't, however, affect any of their previously paid paystubs.
To see a vehicle benefit on a person's paystub:
- First, click the person.
- Hover your mouse over the vehicle benefit, then click the "See on paystub" button:
- And now, you'll see the vehicle benefit showing under: "Benefits in kind ... company arranged"
- And finally, that's how you'll know the vehicle benefit was created successfully.
And that's it! That's everything you need to know about creating vehicle benefits!
2. How do I open the vehicle benefit settings?
1:13
"How do I find a vehicle benefit so I can make changes?"
...
To find a vehicle benefit in a pay batch:
- First, select the pay batch on:
Menu > Pay batches - Then click:
Pay > Repeat payables - And finally, all the pay batch's repeat payables, including vehicle benefits now show up.
To find a person's vehicle benefit:
- First, select the person using the vehicle on:
Menu > People - Then click:
Pay > Pay - Scroll down, all the way to the bottom, then look for: "repeat payables ... pay batch"
- And finally, all the person's repeat payables, including vehicle benefits, now show up.
And that's it! That's everything you need to know about finding a vehicle benefit to make changes!
3. How do I share a vehicle benefit between one or more employees?
2:33
"How do I share a vehicle between people?"
When you share a vehicle between people, the benefit is split equally on each person's paystub.
To share a vehicle between multiple people:
- First, scroll down, then click:
Add people - Add as many people as you like, to equally share the vehicle between them.
- Then click: Save
- And finally, your selected people now share this vehicle equally.
To see a first vehicle sharing person's paystub:
- First, click the first vehicle sharing person.
- Hover your mouse over the vehicle benefit, then click the "See on paystub" button:
- You'll now can see the amount added to the first person's paystub as a: "Benefit in kind"
- And finally, hover your mouse over the row to see how this is calculated.
To see a second vehicle sharing person's paystub:
- First, click off to return back to the vehicle benefit.
- Click the second vehicle sharing person.
- Then click the "See on paystub" button:
- And finally, you'll see the same amount on the second person's paystub as well.
To remove a person sharing a vehicle:
- First, click off to return back to the second person's repeat payables.
- Click the "remove" link under the vehicle benefit to remove this second person.
- And finally, now that the second person's removed, the first, and only, person's getting 100% of the vehicle benefit.
To see a vehicle benefit in kind on a person's paystub:
- First, click the person.
- Then click the "See on paystub" button:
- And finally, now you'll see 100% of the vehicle benefit instead of the previous 50%, because the person isn't sharing the vehicle anymore.
And that's it! That's all you need to do to share your vehicle between people!
4. How do I create a private use deduction for a vehicle used by an employee?
1:34
"A person's agreed to have money automatically deducted from their paystub for the private use of a company vehicle. How do I set up this deduction?"
...
To set up a pay batch's repeat payable deduction:
- First, scroll down and expand the "Optional" section.
- Then in Employee paystub deductions for private use, enter how much is to be deducted, every year, to drive this vehicle privately.
- Click Save, and that's it! The private use deduction has been set up.
- When you scroll down to the bottom of the page, you'll see the person listed. This way you'll know that the person's getting the vehicle benefit.
- And finally, now that the private use deduction has been set up, some money is set to be automatically taken off the person's paystub every payday.
To see a private use vehicle deduction on a person's paystub:
- First, click the person.
- Then click the "See on paystub" button:
- Scroll down to "Post-tax withholdings" (at the bottom of the paystub).
- And finally, you'll now see £10 taken off the person's monthly paystub as: "Vehicle private use"
To see how a private use vehicle deduction is calculated:
- First, hover your mouse over the row.
- Then you'll see that the private use vehicle deduction is calculated as a total cash equivalent, per year.
- And then divided by the person's number of paydays in the year.
- And finally, equaling an amount per payday.
And that's it! That's everything you need to know about deducting for private use of a company vehicle.
5. How do I set it up so the employer pays for an employee's private fuel use?
1:55
"How do I update the vehicle benefit if my company covers the cost of fuel used for private purposes?"
...
To update a pay batch's vehicle benefit repeat payable:
- First, scroll down to: "Fuel"
- Then turn on:
Employer also pays private fuel costs - Click Save, and that's it!
- And finally, a private fuel "Benefit in kind" is added to the pay batch's people's paystubs because of this vehicle benefit.
To see a paystub's private fuel amount:
- First, to reload the page, click the "Reload tab" button: (at the top)
- Then scroll down, and expand: "Advanced"
- Now you'll see the yearly private fuel "Benefit in kind" cash equivalent.
- You'll also find the vehicle benefit's yearly cash equivalent.
- And finally, in total it comes to both amounts added together, per year.
To see a private fuel "Benefit in kind" and vehicle benefit on a person's paystub:
- First, scroll down, then click the person.
- Then click the "See on paystub" button:
- And finally, now you'll see the amount added to the person's paystub as a: "Benefit in kind"
To see how a vehicle benefit is calculated:
- First, hover your mouse over the row.
- Then you'll see that the vehicle benefit is calculated as a total cash equivalent, per year.
- And then divided by the person's number of paydays in the year.
- And finally, equaling an amount per payday.
And that's it! That's all you need to do, if your company pays for private fuel.
6. Cars only. How do I set it up when an employee pays for part of the cost of a company car?
2:29
"If a person pays for part of the purchase cost of a company car, how do I enter this?"
...
To set up a company car part payment:
- First, scroll down, then expand the "Optional" section.
- Then fill in Employee payments towards car, also known as capital contributions.
- This amount is a one time cost, and isn't automatically deducted from anybody's paystub.
- And finally, click Save, and that's it!
To calculate how much a vehicle's yearly cash equivalent is reduced by:
- First, scroll up to find the purchase price of your car.
- The person paid £3,000 towards the price of the car, which means the yearly cash equivalent is halved because £3,000 is half of £6,000.
- You can see the amount if you scroll down, then expand: "Advanced"
- And finally, you'll see the previous yearly cash equivalent.
To see a new yearly cash equivalent:
- First, to reload the page, click the "Reload tab" button: (at the top)
- Then expand "Advanced" again.
- And finally, you can see the new yearly cash equivalent is now £600, which is half of the previous £1,200.
To see a new yearly cash equivalent on a paystub:
- First, scroll down to: "People getting this"
- Then click a person getting this car benefit.
- Then click the "See on paystub" button:
- And finally, you'll see the amount added to the person's paystub as a: "Benefit in kind"
To see how a company car part payment is calculated:
- First, hover your mouse over the row.
- Then you'll see that the company car part payment is calculated as a total cash equivalent, per year.
- And then divided by the person's number of paydays in the year.
- And finally, equaling an amount per payday.
And that's it! That's all you need to do, if a person pays for part costs on a company car.
How do I setup a mileage allowance for an employee?
3:34
"How do I set up a repeating mileage allowance for a person who's covering their own work related traveling costs?"
...
To set up a mileage allowance:
- First, select the person who's getting the allowance on:
Menu > People - Next, you need to make a new repeat payable.
- Go to:
Pay > Pay - Scroll down to: "Repeat payables ... personal"
- Then click the "Add" button:
- Select: "Mileage allowance"
- Start by setting Mileage allowance ... per year by dragging the slider, you can also type in a number if you'd like.
- Next, set Estimated miles ... per year to a rough estimate of how many miles the person travels in one year.
- You'll notice as you drag the slider, the big tax-free percent (at the top) changes. The higher the miles, the more of the mileage allowance is tax-free.
- If you have a high enough number of miles, the mileage allowance becomes 100% tax-free.
- Next, click: Save
- And finally, a 100% tax-free mileage allowance is now added to the person's paystub every payday.
To see a repeating mileage allowance on a person's paystub:
- First, hover your mouse over Mileage allowance ... per year
- Then click the "See on paystub" link.
- You'll now see £100 added to the person's monthly paystub.
- And finally, you can tell the £100 is tax-free because it's under the "Post-tax benefits and reimbursements" section.
To see how a repeating mileage allowance is calculated:
- First, hover your mouse over the row.
- Then you'll see that the repeating mileage allowance is calculated as a total cash equivalent, per year.
- And then divided by the person's number of paydays in the year.
- And finally, equaling an amount per payday.
To make a mileage allowance partly taxable:
- First, click the dark area to return back to the repeat payable.
- To make part of the mileage allowance taxable, lower the estimated miles and watch the big tax-free percent change.
- Now, to see the change on the person's paystub again, click the "See on paystub" link.
- You'll now see £48 added to the person's paystub, which is about half of the previous £100.
- And finally, this is under the "Post-tax benefits and reimbursements" section, which means the £48 is tax-free.
To find a mileage allowance's other taxed half:
- First, scroll up to the "Pre-tax benefits" section.
- Now you'll see the amount added to the person's paystub as: "Taxable mileage allowance"
- And finally, because the £51 is in the "Pre-tax benefits" section, this means it's taxable, like the person's regular pay.
And that's it! That's all you need to do, to set up a repeating mileage allowance!