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Cycle to Work Scheme

Cycle to Work Scheme

Hi all

We will be implementing a Cycle to Work Scheme shortly for all our employees.

My question is, how do I deal with this in terms of double entry? 

We will be receiving invoices from the retailer, are these posted to a Fixed Asset code and therefore depreciated, or coded to an expenditure code within the P&L?

Then, where do I code the salary sacrifice to? Will this credit an expenditure code within the P&L, or some kind of liability code within the Balance Sheet? 

Many thanks 

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27th Feb 2016 18:52

Surely it's up to you.  Or rather, your company's management.

Personally, I'd simply record the "salary sacrifice" as reduced wages and the costs of the scheme as staff welfare or similar.

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