Q. I’m trying to model a client’s income, the client is paid a basic salary, a cash bonus on top, and then a share award on top of that. For some reason when I enter the share award in the benefits in kind box on Voyant, it does not show up in the base plan as part of his inflows. Can you give me any insight as to why and how to get round this problem so that I can use the benefits in kind box?
A. A benefit in kind is only accounted for as a taxable benefit, such as a car allowance. It will not be shown as an inflow of funds. It will, however, be accounted for in your client's annual taxes. Only earnings, bonuses, and for business owners, dividends, will be shown as inflows on the cash flow.
If you want to show the benefit as an inflow perhaps it would be best to include it in the annual bonus field.