Cat. B. Payments made on behalf of employee

"If a company pays an employee's personal payments, how's it recorded?"

When the company pays for an employee's personal payments, it needs to be recorded as a: "Benefit-in-kind"

To record a company paying for an employee's personal payments as a "Benefit-in-kind":

1. First, tap: "Menu", then "Add / deduct from pay"
2. Next, tap: Benefit-in-kind
3. Then select: One-off
4. Select the person who the company's paying the personal payments for.
5. If you've got an image, like a receipt, that you'd like to include, you can upload, or take a photo of it.
6. Then tap: Next
7. Then decide from the benefit-in-kind suggestions, or tap "type directly" (at the top) to type in your own short description of the one-off benefit-in-kind.
8. Type in the value of the personal payments the company's paying.
9. And when it's a payroll admin who's entering it, the expense is automatically approved.
10. Then tap its "Edit" button:
11. Set "Arranged by" to "Employee", and tap: Save
12. Now, you can see the benefit-in-kind showing on the person's payslip.
13. And when you hover your mouse over the "Benefit-in-kind" amount, you'll see the details.
14. And finally, you'll know that the personal payment's value is being correctly recorded and taxed.

Keep in mind that:

• In some cases, the employee has themselves paid for the personal payment cost, and is asking the company for a once-only reimbursement.
• To add a "One-off taxable benefit" reimbursement, watch the video on: One-off benefit-in-kind
• Also, if the personal payment repeats every week, month, or every payday, set it up as a repeating: "Benefit-in-kind"

To learn more:

• About how to set up a repeating "Benefit-in-kind", watch the video on: Repeating benefit-in-kind
• Also, to learn more about personal payments, go to GOV.UK.

And that's it! That's everything you need to know about paying for an employee's personal payments!