Hoping someone can help because I cannot find a straight forward answer regarding how to account for the cycle to work scheme.
We have a bike with the cycle scheme purchased for £8500 including VAT. A finance company has paid this off on our behalf whilst we pay them as below. I have an invoice for £8500 to us so we can claim back the VAT.
The finance agreement in place is paying off the bike at £777.75 per month - split £708.33 bike and £69.42 interest
How do we account for claiming back the VAT? How do we account the for the Employee benefit side?
Thanks for the help