Thanks Dan, that makes a lot of sense and lines up with Ben's suggestion as well. I think in my case I'll keep the income leg separate as well in an "Income:Hooli:BIK" instead of adjusting the ":Salary" leg. This way I retain the distinction between the "real" salary and the benefits, but apart from that it should be the same.
I think I now have a way forward to continue my journey with beancount! Many thanks, Pedro On Friday, 26 February 2021 at 19:01:08 UTC [email protected] wrote: > Hello Pedro, > > except the name, which I never heard before, I think this form of > benefits is rather common. The way I handle it is to simply record it as > an expense, ie the fact that the money never reaches my bank account is > not relevant for accounting purposes. The expense is recorded as a > posting in the same transaction that record the payslip, so that the > "atomicity" of the operation is not lost. > > In your case, it seems that this requires juggling the amounts a bit: > > 2000-01-31 * "Salary" > Income:Hooli:Salary -2050.00 GBP > Assets:Pension 500.00 GBP > Expenses:Taxes:Income 250.00 GBP > Expenses:Taxes:NI 50.00 GBP > Expenses:BIK 50.00 GBP > Assets:BankAccount 1200.00 GBP > > IIUC what the end result is supposed to be. > > Cheers, > Dan > > > On 26/02/2021 19:02, Pedro F wrote: > > 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 > > > > > > -- > > You received this message because you are subscribed to the Google > > Groups "Beancount" group. > > To unsubscribe from this group and stop receiving emails from it, send > > an email to [email protected] > > <mailto:[email protected]>. > > To view this discussion on the web visit > > > https://groups.google.com/d/msgid/beancount/5cf5bddb-3945-48df-85a6-566df31f652bn%40googlegroups.com > > < > https://groups.google.com/d/msgid/beancount/5cf5bddb-3945-48df-85a6-566df31f652bn%40googlegroups.com?utm_medium=email&utm_source=footer > >. > > -- You received this message because you are subscribed to the Google Groups "Beancount" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To view this discussion on the web visit https://groups.google.com/d/msgid/beancount/e5a2004f-788e-4d97-a464-671fc92e6e25n%40googlegroups.com.
