That's what I was considering. I suppose that is the only way really: if I
want to report on it I need to record it as a posting and I need to absorb
it somewhere so everything balances.
Is there any reason you're suggesting an equity account as opposed to, say
expenses? Intuitively, it feels strange to call this equity but maybe it's
because I'm relatively new to beancount.
Back to my example, if add 2 accounts: Income:Hooli:BIK and Equity:BIK, it
would become:
2000-01-31 * "Salary"
Income:Hooli:Salary -2000 GBP
Income:Hooli:BIK -50 GBP
Equity:BIK 50 GBP
Assets:Pension 500 GBP
Expenses:Taxes:Income 250 GBP
Expenses:Taxes:NI 50 GBP
Assets:Bank:Current 1200 GBP
With this, I could say that:
- Taxable Income: SUM(Income:Hooli:*)
- "Normal" Income: SUM(Income:Hooli:*) - Equity:BIK
As usual, naming things is hard so I'll need to come up with an intuitive
name for these accounts
If that's the case I guess I really needed a rubber duck to think this
through :)
Thanks
On Friday, 26 February 2021 at 18:20:02 UTC b...@bben.us wrote:
> How about adding an Income leg for the BIK amount + an equity posting
> which absorbs it? That will make the transaction balance.
>
> On Fri, Feb 26, 2021, 10:02 Pedro F <pe...@notself.org> 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
>>
>>
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