Hi everyone, I've been lurking here for a while as I migrated my 10 years
worth of transactions into beancount (from a bespoke solution involving
excel and python). I'm now fine tuning things and starting to extract nice
report and I'm really pleased with beancount/fava and what it can do,
including how easy it is to intergrate with Jupyter. Thanks for all the
effort put into this great tool :)
I'm struggling to represent how benefits in kind (BIK) are handled in my
payslip. This is likely to be very UK specific but I was hoping someone
could share some ideas. An example of a BIK is health insurance where the
employer pays for the benefit but the employee still has to pay tax on it
(basically increasing the taxable income).
Here's a made up example of how this shows up in a payslip:
---------------------------
Gross Pay:
- Salary: £2000
- Pension Contribution: -£500
- BIK: Health Insurance: £50
Total Pay: £1500
Deductions:
- Income Tax: -£250
- National Insurance: -£50
Total Deductions: -£300
Net Pay: £1200
---------------------------
Noteworthy points:
- Total Pay = Salary + Pension Contribution (or, more generically,
SUM(Gross Pay items) excluding BIK entries). Pension contributions are
taken from the gross salary, decreasing the taxable income.
- Total Deductions = SUM(Deductions)
- Net Pay = Total Pay + Total Deductions
The taxable income, that is not reported in the payslip but it's what is
reported to the tax man and what's used to decide how much tax we pay, does
include the BIK entries. If I check the details on HMRC (IRS in the US I
guess), the taxable income for this month would be £1550.
When it comes to beancount, I could just ignore the BIK entries and log it
as:
2000-01-31 * "Salary"
Income:Hooli:Salary -2000 GBP
Assets:Pension 500 GBP
Expenses:Taxes:Income 250 GBP
Expenses:Taxes:NI 50 GBP
Assets:BankAccount 1200 GBP
But this doesn't make it possible to calculate the taxable income and If I
add postings with the BIK entries the transaction doesn't balance.
My goal is to be able to extract a report of my actual taxable income,
which means that I need to somehow add the BIK postings to the transaction.
Does anyone have a sensible way to represent this? I feel like I may be
missing something very obvious :)
Thanks
Pedro
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