2. If a company buys an asset from an employee, how's it recorded?

"If a company buys an asset from an employee, how's it recorded?"

When the company buys an asset from an employee, the buying price of the asset is tax-free.

To record buying an asset from an employee:

1. First, tap: MenuExpense claim
2. Select the person who the company is buying the asset from.
3. Then tap: Once only tax-free benefit
4. You can attach an image, like a sale agreement, or tap: Skip image
5. Type in how much the asset is worth when you're buying it from the employee, and tap: Next
6. Then for "Requesting because", type a short description of the asset the company's buying, and tap: Next
7. And because it's a payroll admin who's entering it, the expense is automatically approved.
8. Now, to see how it shows up on the person's payslip, scroll down and tap: See on payslip
9. And when you hover your mouse over the "Once only tax-free benefit" amount, you'll see the details.
10. And finally, you'll know that the asset's value is being correctly paid to the employee, free of tax.

Keep in mind that:

• If the company buys an asset from an employee for more than it's market value, the amount over the market value is taxable.
• To record it, still do the steps above, to record the amount up to the market value.
• And then also add a "Once only taxable benefit" expense for the amount over the market value.

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 buying an asset from an employee!