Cycle to Work Scheme accounting treatment

AvocadoAli

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

stevef

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.