my company are offering all employees the opportunity to claim money back through us for the purchase of an iPad. We are saying we will pay the VAT and on top of that match it. So for an iPad costing £479 we will pay the employee £79.83 VAT plus a further £79.83, total £159.66.
How do I account for this? The iPads will be used for work so are a legitimate office expense but what do I input into our accounts system?
It sounds like you're making a contribution towards them using their own asset for business use, a bit like a car allowance. You don't own the asset, you're simply 'lightening the load'. I would think that it should be posted under computer consumables.
Based on my understanding of what you have asked. If the ipad will belong to the employees.
For transparency sake. I would post it as an asset to the company at the price it was purchased. Then dispose of the asset at the cost the employees are paying for it.
