Thanks On Friday, February 26, 2021 at 11:31:16 AM UTC-8 Pedro F wrote:
> 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 visit https://groups.google.com/d/msgid/beancount/727a6113-3db0-4f1a-b83c-6c1b1f686d05n%40googlegroups.com.
