Novated Lease Luxury Car Charge
Hi, We have a client who has an employee on a novated lease through Flare. Everything has been setup correctly in MYOB. The employee is required to pay a luxury car charge as the vehicle is over th...
Forum Discussion
Hi Katina1,
We're glad to have you in the Community Forum!
Thanks for giving such a clear rundown of the situation. Handling novated leases is complex, and it’s always a good idea to check in with your accounting advisor.
When you set up a novated lease for an employee through Flare, it's pretty hands-off. The payroll system will automatically show the lease as a credit in your expense account, and you'll have to record a corresponding debit entry against that same account. This is usually completed using an allocation or a spend money transaction. You can check out this link for all the details on how novated lease works in MYOB, it got you covered.
Cheers,
Princess
