UK Staff Sales / Employee Discounts Accounting Treatment?

[quickquery]

Hi

Just a quick query for you all on how to show staff sales in the P&L.

We're basically looking to implement a staff discount of around 30% on our services (which will still provide a small margin on cost).

Just wondering if they still hit topline sales as normal or if we're supposed to strip them out at year end in our stat accounts

Thanks!

 

[Gerald]

You could show the difference between standard sale price and discounted sale price in a sales discount or employee discount account (in the revenue section). It could be netted together for financial statement presentation, especially if immaterial.

Careful about the discount %. Anything beyond 20% is considered a taxable benefit (wages) to your employees.