Taxable benefit - expense claimed in next tax year

ro1892

Just wondering how (if at all) a taxable benefit (monthly phone bill) works when it is claimed in the subsequent tax year.

For example say I pay my phone bill personally to my provider on 1st April 2025 but I don't expense it at work until 7th April 2025 and don't get paid by work until 12th April 2025. Which tax year will/should it fall into?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6663508/taxable-benefit-expense-claimed-in-next-tax-year

It's really only something your employer can answer with any certainty but I suspect it will be 2025/26.

cc123mm456

I'm a bit confused about the "Taxable Benefit" aspect.

Is it your situation that there is an agreement for your employer to pay your total monthly phone bill, but because there is an element of personal use, that is determined to be a taxable benefit. i.e. it could not be justified as an out of pocket expense that is completely for business use only?

If that is the situation, it is simply a taxable additional payment, and the date that the employer pays it will determine the tax year.

But yes, double check with your employer to be sure.

ro1892

https://forums.moneysavingexpert.com/discussion/comment/81959759#Comment_81959759

Yeah that's correct, the employer pays my total monthly bill as I use the phone for work but there is an element of personal use (as it is my personal phone).

cc123mm456

It would be interesting to find out how your employer reports this payment to HMRC.

If it was paid via payroll, and then it would be included in your wage slip, and would be reported in your P60 at the tax year end. In that case any payments made between 6th April 2025 and 5th April 2026 will be included in the wages and your P60 for the 2025/26 tax year.

If the employer is paying the amount gross, then I expect that they will be reporting it to HMRC as a taxable benefit via the P11D. Employers are allowed up to July after the tax year end to send the P11D data to HMRC (and copy you in).

If you need to understand what figures the employer is using on the P11D calculation, you would either have to wait for the P11D, or contact them.

ro1892

It's usually paid with my monthly pay and added onto my payslip (marked as taxable) so in that case I suspect it will get counted for the tax year 2026-27 as that will be the tax year when my employer makes the payment to me.

cc123mm456

In that case, the only document you will need will be the P60. That will include all the taxable pay for the year, including this payment.

Employers usually send the P60 shortly after the tax year end. Sometimes with the first payslip for the new tax year.