Hi, An employee has bought a bike through cycle to work. I have set up the salary sacrifice on sage 50 payroll this was straightforward. Putting the bike as a company fixed asset and claim input VAT seems straightforward. My question is how to account for output VAT on the salary sacrifice amount which HMRC demands that we do since 28 July 2011. Sage payroll as far as i can see cannot account for VAT so must i just journal this manually every month to the Sales VAT nominal? It would seem much easier to simply NOT account for the input VAT so that by the end of a year it will cancel out but i am not sure this is allowed. Any help much appreciated!