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Cycle to Work Scheme accounting treatment

Hi all

We are going to be implementing a Cycle to Work Scheme, and I wanted to double check the accounting treatment for this.

Do I code the invoices to a Fixed Asset code and depreciate, or code to an Expenditure code?
Where do I code the salary sacrifice repayments? As a credit to an expenditure code? I want to see how the coding will align?

Normally with an employee loan we code the payment to a liability code, and credit the liability code with the repayments, so it contra's to zero.

TIA

Comments

  • stevefstevef Well-Known CarmarthenRegistered Posts: 258
    With the payments and deductions we do the same as you describe, throw all into a holding accounts which zero's out. With our cycle scheme all the agreements are for one year and therefore we treat them as an expense in the year of acquisition.
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