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Expenses for vehicles

Setting up a company vehicle3:52
Setting up a company vehicle
Finding a vehicle benefit1:19
Finding a vehicle benefit
Sharing a vehicle2:44
Sharing a vehicle
Paystub deductions for private use1:42
Paystub deductions for private use
Private fuel2:02
Private fuel
Employee pays part of car cost2:47
Employee pays part of car cost
Mileage allowance3:41
Mileage allowance
7 videos, with playing time of 17 minutes


 

Setting up a company vehicle3:52

"My company's agreed for an employee to use a company vehicle for private purposes, or in other words, a "Benefit in kind"." 

"This increases the employee's taxable pay, but doesn't increase the employee's in-the-hand pay." 

"How do I set up a "Company vehicle" repeat payable for the employee?" 

To get started: 

  1. Click your way to: Menu > Pay batches 
  2. Then choose your pay batch. 
  3. To make a new repeat payable, navigate to Pay > Repeat payables 
  4. Then click: New repeat payable 
  5. Choose: Company vehicle ... private use 
  6. If this vehicle is a van, then click Vehicle type, and choose Van 

In this example we'll keep it as: Car 

  1. Next, enter the vehicle's Make and model 
  2. Next, type in your vehicle's License plate 
  3. Keep going, and enter the vehicle's Purchase price + accessories, then enter the vehicle's Date first registered 
  4. Scroll down to: Fuel 
  5. If you know your vehicle's CO2 emissions, enter it here. Otherwise, if you don't know your vehicle's CO2 emissions, you can easily look it up using your vehicle's number plate. 
  6. To do this, click the "Lookup CO2 emissions" link underneath. 
  7. This'll take you to the government vehicle enquiry website. 
  8. Type in your vehicle's number plate, then click: Continue 
  9. Click Yes, then: Continue 
  10. If you scroll down, you'll see your vehicle's CO2 emissions, date of first registration, engine size, and more. 
  11. Now that you have your vehicle's CO2 emissions, go back to 1st Money, and type it in. 
  12. Next, to add the people who'll be using this vehicle, scroll down. 
  13. Click Add people, and choose the people to add. 
  14. In this example we'll only add Clara, but you can watch our video on Sharing a vehicle with more than one person. 
  15. Finally, click: Save 

And that's it! The vehicle benefit has been created and shared with one person. 

Now you'll see Clara's getting 100% of this vehicle benefit because her's is the only name in the list. 

This vehicle benefit will now show up on Clara's next unpaid paystub, and won't affect any of Clara's already paid paystubs. 

To see this vehicle benefit on Clara's paystub: 

  1. Click onto Clara. 
  2. Hover your mouse over the vehicle benefit, then click the "See on paystub" button with the circles. 
  3. Now you'll see the vehicle benefit showing under "Benefits in kind ... company arranged". 

And that's how you'll know the vehicle benefit was created successfully. 

And that's it! That's all you need to know to create vehicle benefits! 

Updated: Fri, Jan 13, 2023. Keywords: F. Headings: `How do I make a company car?`, `How do I make a company van?`, `Is car fuel part of car benefits?`, `Is car fuel part of van benefits?`, `How are car benefits created?`, `How are van benefits created?`
 

Finding a vehicle benefit1:19

"How do I find a vehicle benefit so I can make changes?" 

To find a vehicle benefit: 

  1. Click your way to: Menu > Pay batches 
  2. Then choose your pay batch. 
  3. Now, to open your pay batch's repeat payables, go to: Pay batch > Pay > Repeat payables 
  4. All your pay batch's repeat payables, including vehicle benefits will show up here. 

Here's the second way to get to a vehicle benefit: 

  1. Go to a person that uses that vehicle, then go to that person's repeat payables. 
  2. To do this, click: Menu > People, and choose a person using that vehicle. 
  3. In this example, we'll choose Clara. 
  4. Then click over to: Person > Pay > Pay 
  5. Scroll down, all the way to the bottom, then look for "repeat payables ... pay batch". 
  6. All this person's repeat payables, including vehicle benefits, will show up here. 

And that's it! That's two ways to find a vehicle benefit to make changes! 

Updated: Fri, Jan 13, 2023. Keywords: return, later. Headings: `Where are vehicle benefits stored?`, `How can I find a vehicle benefit?`
 

Sharing a vehicle2:44

"How do I share a vehicle between people?" 

When you share a vehicle between people, the benefit will be split equally on each person's paystub. 

To see how this works, let's share this vehicle between two people. To get started: 

  1. Scroll down, then click: Add people 
  2. In this example we'll add Henry and Sonia, but you can share vehicles between as many people as you like. 
  3. Click: Save 
  4. Now Henry and Sonia share this vehicle equally, getting 50% each. 

To see this on Henry's paystub: 

  1. Click onto Henry. 
  2. Hover your mouse over the vehicle benefit, then click the "See on paystub" button with the circles. 
  3. Here you can see £50 added to Henry's paystub as a "Benefit in kind". 
  4. Hover your mouse over the row to see how this is calculated. 
  5. For this example, the £50 is calculated as £1,200 per year, divided by twelve paydays in the year, so that's £100 per payday, divided by the two people sharing this vehicle, Henry and Sonia. 

The same £50 will also be added to Sonia's paystub. To see this: 

  1. Click off to get back to the vehicle benefit. 
  2. Click onto Sonia. 
  3. Then click the "See on paystub" button with the circles. 
  4. Here you can see the same £50 on Sonia's paystub as well. 

Now let's try removing Sonia from this vehicle: 

  1. Click off to get back to Sonia's repeat payables. 
  2. Click the "remove" link under the vehicle benefit to remove Sonia. 
  3. Now that Sonia's removed, Henry's getting 100% of the vehicle benefit. 

To see this on Henry's paystub: 

  1. Click onto Henry. 
  2. Then click the "See on paystub" button with the circles. 
  3. Now you'll see £100 instead of the previous £50, because Henry isn't sharing the vehicle with Sonia anymore. 

And that's it! That's how you share your vehicle between people! 

Updated: Fri, Jan 13, 2023. Keywords: use, distribute, communal. Headings: `Can I share a vehicle benefit between people?`, `How many people can I share a vehicle with?`
 

Paystub deductions for private use1:42

"My employee'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 the deduction in the pay batch repeat payable: 

  1. Scroll down and expand the "Optional" section. 
  2. Then, in Employee paystub deductions for private use, enter how much will be deducted, every year, to use this vehicle privately. We'll set it to £120 a year. 
  3. Click Save, and that's it! The private use deduction has been set up. 

In this example, We know that Henry's getting this vehicle benefit because he's listed at the bottom of the page. 

Now that the private use deduction has been set up, some money will be automatically taken off Henry's paystub every payday. 

To see this on Henry's paystub: 

  1. Click onto Henry. 
  2. Then click the "See on paystub" button with the circles. 
  3. Scroll down to "Post-tax withholdings" at the bottom of the paystub. 
  4. You'll now see £10 taken off Henry's monthly paystub as "Vehicle private use". 

To see how this is calculated: 

  1. Hover your mouse over the row. 
  2. For this example, the £10 is calculated as £120 per year, divided by twelve paydays in the year, equals £10 per payday. 

And that's it! That's all you need when deducting for the private use of a company vehicle. 

Updated: Fri, Jan 13, 2023. Keywords: personal, payment, subtraction. Headings: `How can I create payments for private use?`, `Can private use payments be deducted?`
 

Private fuel2:02

"How do I update the vehicle benefit if my company covers the cost of fuel used for private purposes?" 

To update the vehicle benefit in the pay batch repeat payable: 

  1. Scroll down to "Fuel". 
  2. Then turn on Employer also pays private fuel costs 
  3. Click Save, and that's it! 
  4. Now a private fuel "Benefit in kind" will be added to Henry's paystub because he's getting this vehicle benefit. 

To see the private fuel amount added to Henry's paystub: 

  1. First reload the page by clicking the reload button at the top. 
  2. Then scroll down, and expand "Advanced". 
  3. Here you'll find the yearly private fuel cash equivalent, in this example it's £1,200. 
  4. You'll also find the vehicle's yearly cash equivalent, which is also £1,200. 
  5. In total that's £2,400 per year. 

To see this £2,400 on Henry's paystub: 

  1. Scroll down, then click Henry. 
  2. Then click the "See on paystub" button with the circles. 
  3. Here you can see £200 added to Henry's paystub as a "Benefit in kind". 

To see how this is calculated: 

  1. Hover your mouse over the row. 
  2. In this example the £200 is calculated as the total cash equivalent, £2,400 per year, divided by twelve paydays in the year, to get £200 per payday. 

And that's it! That's all you need to do, if your company pays for private fuel. 

Updated: Fri, Jan 13, 2023. Keywords: personal, petrol. Headings: `How can I turn on employer provided private fuel?`
 

Employee pays part of car cost2:47

"If my employee pays for part of the purchase cost of a company car, how do I enter this?" 

If an employee pays for part of the cost of a company car, the yearly cash equivalent of the car will be reduced. Here's how to enter how much the employee paid. 

To get started: 

  1. Scroll down, then expand the "Optional" section. 
  2. Then fill in Employee payments towards car, also known as capital contributions. 
  3. In this example we'll enter £3,000. 
  4. This amount is a one time cost, and isn't automatically deducted from anybody's paystub. 
  5. Finally, click Save, and that's it! 

Now, to calculate how much this car's yearly cash equivalent is reduced by: 

  1. First scroll up to find the purchase price of your car. 
  2. In this example it's £6,000. 
  3. The employee paid £3,000 towards the price of the car, which means the yearly cash equivalent will be halved because £3,000 is half of £6,000. 
  4. You can see this if you scroll down, then expand "Advanced". 
  5. Here you'll see the previous yearly cash equivalent, in this example it's £1,200. 

Now, to get the new yearly cash equivalent: 

  1. Reload the page by clicking the reload button at the top. 
  2. Then expand "Advanced" again. 
  3. Here you can see the new yearly cash equivalent is now £600, which is half of the previous £1,200. 

To see the new yearly cash equivalent of £600 on a paystub: 

  1. Scroll down to "People getting this". 
  2. Then click a person getting this car benefit. In this example We'll click Henry. 
  3. Then click the "See on paystub" button with the circles. 
  4. Here you can see £50 added to Henry's paystub as a "Benefit in kind". 

To see how this is calculated: 

  1. Hover your mouse over the row. 
  2. In this example the £50 is calculated as the yearly cash equivalent, £600 per year, divided by twelve paydays in the year, to get £50 per payday. 

And that's it! That's all you need to do, if an employee pays for part of the cost of a company car. 

Updated: Fri, Jan 13, 2023. Keywords: contribution. Headings: `How are capital contributions handled?`, `Can I add capital contributions?`
 

Mileage allowance3:41

"How do I set up a repeating mileage allowance for an employee who's covering their own work related traveling costs?" 

To set up a mileage allowance, 

  1. Click: Menu > People 
  2. Choose the person who's getting the allowance. 
  3. In this example we'll choose Henry. 
  4. Next, we need to make a new repeat payable. 
  5. Go to: Pay > Pay 
  6. Scroll down to "Repeat payables ... personal". 
  7. Then click the add button. 
  8. Choose "Mileage allowance". 
  9. Start by setting Mileage allowance ... per year by dragging the slider, you can also type in a number if you'd like. 
  10. In this example we'll set Mileage allowance ... per year to £1,200. 
  11. Next, set Estimated miles ... per year to a rough estimate of how many miles this employee travels in one year. 
  12. You'll notice as you drag the slider, the big tax-free percent at the top will change. The higher the miles, the more of the mileage allowance will be tax-free. 
  13. In this example we'll drag the slider to 3000 miles, so that the mileage allowance is 100% tax-free. 
  14. Finally, click Save, and that's it! 

Now a 100% tax-free mileage allowance will be added to Henry's paystub every payday. 

To see this mileage allowance on Henry's paystub: 

  1. Hover your mouse over Mileage allowance ... per year 
  2. Then click the "See on paystub" link. 
  3. You'll now see £100 added to Henry's monthly paystub. 

You can tell the £100 is tax-free because it's under the "Post-tax benefits and reimbursements" section. 

To see how this is calculated: 

  1. Hover your mouse over the row. 
  2. For this example, the £100 is calculated as £1,200 per year, divided by Henry's twelve monthly paydays in the year, which equals £100 per payday. 

Now let's change the example, and make part of the mileage allowance taxable. 

  1. Click the dark area to get back to the repeat payable. 
  2. To make part of the mileage allowance taxable, lower the estimated miles and watch the big tax-free percent change. 
  3. In this example we'll lower the estimated miles until we get 49% tax-free. 

Now, to see this on Henry's paystub again, click the "See on paystub" link. 

You'll now see £48 added to Henry's paystub, which is about half of the previous £100. 

Like before, this is under the "Post-tax benefits and reimbursements" section, which means the £48 is tax-free. 

To find the other taxed half of the mileage allowance: 

  1. Scroll up to the "Pre-tax benefits" section. 
  2. Here you'll see £51 added to Henry's paystub as "Taxable mileage allowance". 
  3. Because the £51 is in the "Pre-tax benefits" section, this means it's taxable, just like the employee's regular pay. 

And that's it! That's all you need to do, to set up a repeating mileage allowance! 

Updated: Fri, Jan 13, 2023. Keywords: E. Headings: `How do I pay an employee a mileage allowance?`

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