The company pays for a director (who is also an employees) personal insurance, this being treated as a BIK. The double entry in the accounts would be:
Dr Debtor or Payroll expense for this employee? (I'm assuming it goes to payroll expense since they have paid for it and there is no intention to pay the company this money back)
Cr Bank
In the personal tax return of this individual, would we include the BIK amount as part of his payroll ? Or just include the actual payroll as per the P60 and put the BIK amount in the BIK / benefits box.
