1. If an asset's sold or gifted to an employee, how's it recorded?

"If an asset's sold or gifted to an employee, how's it recorded?"

When the company sells or gifts an asset to an employee, it's considered a: "Benefit-in-kind"

To record selling or gifting of assets to employees:

1. First, tap: MenuExpense claim
2. Select the person who's being sold or given the asset.
3. Then tap: Benefit-in-kind
4. You can attach an image, like a receipt, or tap: Skip image
5. Type in how much the asset is worth when you're transferring it to the employee.
6. Optionally, you can also enter an amount in Employee deducted co-pay if you're selling the asset. Or, in other words, if the employee's paying an amount towards the asset.
7. By default, "Arranged by" is already set to: "Company"
8. Then tap: Next
9. Then type a short description of the asset, and tap: Next
10. And because it's a payroll admin who's entering it, the expense is automatically approved.
11. Now, to see how it shows up on the person's payslip, scroll down and tap: See on payslip
12. And when you hover your mouse over the "Benefit-in-kind" amount, you'll see the details.
13. 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.
14. And finally, you'll know that the asset's value has been taxed by Income Tax (PAYE) correctly.

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, a benefit-in-kind increases the employee's taxable pay, but doesn't increase the employee's in-the-hand pay.
• However, the person still gains by receiving the non-cash asset.

To learn more:

• About assets bought, sold or given, go to GOV.UK.

And that's it! That's everything you need to know about selling or gifting an asset to an employee!