Forum Discussion

Thungo's avatar
Thungo
Contributing User
2 months ago

Novated lease ITC

Hi,

I am seeking an advice regarding how to set up within MYOB AccountRight to claim Novated lease ITC. 

Third party  requires employer include GST claimable on the BAS to claim GST input tax credit then return that amount to employee by transferring back to employee trust account.

I have set up liability account and payroll deduction. Salary sacrifice amount from employee wages will be transferred to third party every fortnight. Tax code N-T.

I attached documents for more details.

Regards

Kim

 

  • Isaiah_C's avatar
    Isaiah_C
    MYOB Moderator
    2 months ago

    Hi Thungo,

     

    Thank you for reaching out regarding setting up a novated lease ITC in MYOB AccountRight. For further information on configuring the system to manage GST input tax credits and salary sacrifice deductions, please refer to this link: Novated car leasing.

     

    If you need further assistance or additional questions, reach out to our live chat support through our virtual assistant MOCA or submit a case via MyAccount.

     

    Regards,

    Sai

    • Thungo's avatar
      Thungo
      Contributing User
      29 days ago

      Hi Sai,

      Thank you for your response. I don't see a clear solution from the link for my question.

      Kind regards

      Kim

      • Shella_A's avatar
        Shella_A
        MYOB Moderator
        29 days ago

        Hi Thungo,

         

        I'm sorry if the link provided did not offer a clear solution to your question on how to set up a claim Novated Lease ITC in AccountRight. The PDF summary you receive from Flare after they receive your first payment will show any claimable GST. The non-claimable GST is the GST that applies on the employee's deductions, which doesn't apply to your business. If you prepare and lodge your BAS using your MYOB software, your wage pay items/payroll categories and salary sacrifice components (including pre-tax Flare salary packaging) will typically be reported at W1 on your BAS. Therefore, I highly recommend speaking to your accounting advisor, as they have the knowledge with this process.

         

         

        Kind regards,

        Shella

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