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Credit Cards / Tokens

Created on  | Last modified on 

Summary

A credit card or token is defined as a non-cash voucher which can be used to obtain money, goods or services. It can also be a payment to a third party for the supply of money, goods or services, for example, a credit card or store card. The tax liability arises each time the card or token is used to obtain money, goods or services and applies to all employees.

Resolution

  1. Select the relevant employee then, under benefits, click Credit Cards / Tokens.

    NOTE: If the employee already has a benefit of this type, the existing benefit record appears. To create a new benefit record, click New.

  2. Complete the Credit Cards / Tokens window as follows:
    Reference Enter a unique reference for the credit card or token, for example, the credit card number.
    Taxable If the cost of providing or issuing the credit card or token is taxable, leave the check box selected. If the cost of providing or issuing the credit card or token is not taxable, clear the check box.
    Cost of Provision Enter the expense incurred by the employer with regard to the provision of the credit card or token. Do not enter any cost of goods or services obtained by the employee when using the credit card or token.
    Optional Remuneration Arrangements

    This is the amount of salary or cash given up by the employee in return for the provision of the benefit or the amount of cash pay that the employee could have received instead of that benefit. A benefit is deemed to have been provided via an OpRA if a Cash Foregone value greater than zero is entered.
    Class 1A This check box is selected automatically. If you do not want to include the cost of providing the benefit in Class 1A calculations, clear the check box.

    NOTE: If the Taxable check box is clear, the Class 1A check box is not active.
    Business Use Deduction £ Enter the fixed amount of allowable business expense you have agreed with HM Revenue & Customs.

    NOTE: You should only enter a fixed amount or percentage, not both. Sage 50 P11D only accepts the last entry you made.
    Business Use Deduction %

    Enter the percentage amount of allowable business expense you have agreed with HM Revenue & Customs.

    NOTE: You should only enter a fixed amount or percentage, not both. Sage 50 P11D only accepts the last entry you made.
    Date If the employer pays the cost of the credit card or token, enter the date the employee used the credit card or token. If the employee pays the cost, enter the date the employer reimburses the employee.
    Cost Enter the usage cost of the credit card or token incurred by the employee.
    Employee Contribution Enter the amount of any employee contribution made to you for the provision or use of the credit card or token. The contribution reduces any taxable benefit for the employee. If the employee's contribution is greater than the taxable benefit, the taxable benefit is reduced to zero.
    Amount PAYE'd If you have agreed with HM Revenue & Customs to pay the tax due on the benefit through the employee's payroll, enter the amount from which the tax has been deducted.
    Class 1A This is automatically set to Yes, unless you have cleared the Class 1A check box in the Cost area. If the usage of this benefit is not subject to Class 1A, from the drop-down list, choose No.
    Description Enter the usage description of the credit card or token. For example, if the credit card was used to purchase goods, enter the description of the goods.
  3. To save the benefit record, click Save.
    The chargeable cost and the total P11D cost for this benefit appear in the status bar of the Credit Cards / Tokens window.
  4. To return to the Sage 50 P11D desktop, click Close.

 

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