The director for the company I work for has his home telephone bill paid by the company directly. The contract for the telephone is between him and the phone company. According to the info I have found on the HMRC it says that I should report this on P11D section B, and then add the value of the benefit to the directors other earnings and pay class 1 NICs (but not PAYE tax) through payroll.
My question is - when I add the telephone bill to the payroll as an addition this increases the gross earnings for the director, therefore when I post gross earnings to Sage the amount will be included, but the company has already paid the phone bill so is this double counting the expense? Should I exclude it from gross earnings when I post to Sage?
