diff --git a/src/libs/actions/IOU.js b/src/libs/actions/IOU.js
index 2b49fb8b7dce..93b9af771a32 100644
--- a/src/libs/actions/IOU.js
+++ b/src/libs/actions/IOU.js
@@ -1957,6 +1957,32 @@ function startSplitBill(participants, currentUserLogin, currentUserAccountID, co
         });
     });
 
+    _.each(participants, (participant) => {
+        const isPolicyExpenseChat = ReportUtils.isPolicyExpenseChat(participant);
+        if (!isPolicyExpenseChat) {
+            return;
+        }
+
+        const optimisticPolicyRecentlyUsedCategories = Policy.buildOptimisticPolicyRecentlyUsedCategories(participant.policyID, category);
+        const optimisticPolicyRecentlyUsedTags = Policy.buildOptimisticPolicyRecentlyUsedTags(participant.policyID, tag);
+
+        if (!_.isEmpty(optimisticPolicyRecentlyUsedCategories)) {
+            optimisticData.push({
+                onyxMethod: Onyx.METHOD.SET,
+                key: `${ONYXKEYS.COLLECTION.POLICY_RECENTLY_USED_CATEGORIES}${participant.policyID}`,
+                value: optimisticPolicyRecentlyUsedCategories,
+            });
+        }
+
+        if (!_.isEmpty(optimisticPolicyRecentlyUsedTags)) {
+            optimisticData.push({
+                onyxMethod: Onyx.METHOD.MERGE,
+                key: `${ONYXKEYS.COLLECTION.POLICY_RECENTLY_USED_TAGS}${participant.policyID}`,
+                value: optimisticPolicyRecentlyUsedTags,
+            });
+        }
+    });
+
     // Save the new splits array into the transaction's comment in case the user calls CompleteSplitBill while offline
     optimisticData.push({
         onyxMethod: Onyx.METHOD.MERGE,