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Posted Tue, 05 Jul 2022 11:54:36 GMT by Nikki Smith
Hi, as an in-home care company we trialled an app that our carers used to better serve our clients, the app suits us, we have introduced it. We want to pay a £5 data reimbursement cost to each employee using the app on their private mobile phones on a monthly basis. I can see plenty of advice about telephone and calling cost reimbursement and declaration to HMRC but nothing about data costs. Not all employees will receive the £5 per month and not all who receive it, will receive it every month - depends on hols/sickness/working hours etc.. Can anyone best advise us in this circumstance? How do we treat this cost? Should it be liable to tax and NI through payroll? or should we P11D it? or is it small enough to scrape under the annual expenses radar? Any help gratefully received. Thanks
Posted Tue, 05 Jul 2022 14:05:37 GMT by HMRC Admin 17

If you are reimbursing costs for data for an employee, then any cash payment would be put through the payroll for tax and national insurance purposes.

This would be treated similarly to 'Personal Bill' giudance which can be found here:

Expenses and benefits: personal bills   .

If you wish to cover the costs for any tax and national insurance, you could apply to
HMRC for a PAYE Settlement Agreement.

You can find guidance here:

PAYE Settlement Agreements   .

Thank you.

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