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Novated Lease

efindlay

Has anyone had success with setting up a Novated lease in MYOB. All of their help is geared around Flare but I am not using Flare for the lease. Its an electric vehicle and hence I can generrate GST input credits?? Has anyone done this?

Thanks

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MelHand

I'm a year late getting into this thread, but I just want to say that I am disgusted that MYOB insists on channeling its users into Flare - a MYOB owned company.

Firstly, you MYOB moderators are simply lying to say that it can't be done without having the Novated lease through Flare. IT CAN BE DONE. You just don't provide any support to do it. That is wrong on so many levels. We pay a MYOB subscription fee, and that includes access to support for MYOB. Setting up a lease in MYOB is a MYOB function and you are absolutely obligated to provide instructions.

Secondly, MYOBs push to use Flare is a shameless money-grab. And if I was MYOB management, I would be embarrassed about the company that you got into bed with. They are clueless and completely useless once the salesman has made his pitch and you have signed on the dotted line. It's been a month since we fell into this trap, and we are still struggling through the process of getting our payroll set up. Their responsiveness is extremely poor, their knowledge is very low and their care factor is zero.

A warning to anyone thinking of using Flare - DON'T

MC2023

Thanks @CK_AE and @efindlay

We have set this up in MYOB however end up with a balancing issue in the novated lease liability account.

For example:

As you can see, we are left with a credit of $80 in the novated lease liability account after the pay run in which we deduct the pre/post-tax lease payments from the employee as instructed from the lease company. I realize that some of the novated post tax contribution should include a GST component which we may have to manually adjust for outside of the pay run as MYOB does not appear to allow for us to recognize this within the pay run. However, the issue with the $80 credit in the novated lease liability remains.

Does anyone have the same issue?

Thanks

May

efindlay

I had 2 deductions - one Salary Sacrifice and one a luxury car tax adjustment even though the car is below LCT threshold. But yes as per above and then pay the lease company from the liability. Mine was also an electric car and hence no FBT.

CK_AE

I read and set it up myself and then verified it with my accountant

Not impressed how MYOB had no notes as to how to set this up

Please check with your accountant as to whether it will be subject to FBT, my case it is not subject to FBT and therefore not reportable

This is on Accountright

Payroll - Set up a new deduction called Salary sacrifice - Novated Lease , linked payable account will be a liabiltiy account, my ATO reporting category is non reportable, link the employee and tick exempt from PAYG
On the Employees card go to Payroll Details, Standard pay and then enter the amount that will be deducted from the employess pay
Setup a supplier card for the nominated Novated lease supplier and code this to the same liability account

Hope this helps

efindlay

Hi May,

Understand your frustration. MYOB were zero help and its pretty unethical in my opinion to not support a very common need of your accounting software. In the end the lease company talked me through how to set it up with a combination of new accounts. Hopefully they have someone there that can show you?

Cheers

Euan

MC2023

Hi @efindlay ,

We are having the exact same issue. Did you have any luck with this? MYOB have not been able to help at all. Even over the phone MYOB just directed me to Flare which we are not using. Its extremely frustrating.

Thanks

May

Earl_HD

Hi @Nataliya,

Welcome to the Community Forum! For detailed guidance on how to set up a Novated lease, you can visit the help page Novated car leasing

Regards,
Earl

Nataliya

Can anyone give the answer on how to set up a Novated lease, please? We not using Flare.

efindlay

Yes was able to do it but with absolutely no help from MYOB. My Novated lease company was able to help set it up for me. I cant give you advice on exactly how it was done as I didnt understand it fully but it was a fairly simple process. The annoying thing is that anyone in MYOB would be able to give you the instyructions on how to do it. In fact there are way more complicated things that MYOB has a help information panel on. Id suggest they are deliberately told not to help anyone on this matter.

cia_auseng

Has anyone been able to set up a Novated Lease without integrating with Flare

efindlay

Thanks Princess for the reply but the thread just reiterates what I have asked and in fact says MYOB very unhelpful. I still don’t have an answer to the question which is how to set up a novated lease in MYOB without flare.

many Thanks

euan

Princess_R

Hi @efindlay,

I see you're trying to set up a novated lease in MYOB without using Flare. Setting up a novated lease in MYOB without using Flare can be a bit tricky since most of the help resources are designed for Flare integration. But I found a thread that has some useful information about novated leases that might help you out.

Feel free to get in touch if there's anything else I can assist you with.

Cheers,

Princess