I have bought a new motorbike for my company.
My understanding is:
* I can write it off in the first year and if I use it for private trips,
* I need to put 20% of the purchase price to benefits in kind.
* I will claim full VAT refund
Now I'm trying to record it:
So, I have the purchase invoice:
And I have the journal to write it off:
And the last thing that needs to be done is benefit in kind of 2100.00 (20% of purchase price) processed through payrol sw. Which won't appear in accounts as a separate line.
Is this the proper way how to deal with this case? Am I missing something?