I have just been presented with my first Cycle to Work Scheme and scratching my head on how to account for it.
Firstly how do you account for the purchase of the voucher to purchase the bike, as the bike is never owned by the Company and it is not an actual expense as the lease agreement wis with the employee so where would you enter it within the accounts.
Secondly the Company who has entered into this agreement uses Quickbooks with the standard payroll software, this does not allow you to do a salary sacrifice through payroll. Also the employee in question is the only employee and is the sole director of the Company. He has the option to upgrade to Payroll Advanced but this means losing some of the information held in Quickbooks such as payslips, P32 etc so is not ideal. Is there an alternative way to handle this such as a journal entry outside payroll showing the salary and salary sacrifice.
Thanks for your help