{"id":19907,"date":"2020-01-23T12:02:04","date_gmt":"2020-01-23T12:02:04","guid":{"rendered":"https:\/\/smh.group\/?p=19907"},"modified":"2023-02-15T13:50:05","modified_gmt":"2023-02-15T13:50:05","slug":"call-you-back-new-hmrc-guidance-on-taxing-mobiles","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/call-you-back-new-hmrc-guidance-on-taxing-mobiles\/","title":{"rendered":"Call you back \u2013 new HMRC guidance on taxing mobiles"},"content":{"rendered":"\n

If you\u2019ve received\na new mobile phone from your employer for the new year, new guidance from HMRC\non the taxation of the device may be useful.<\/strong><\/p>\n\n\n\n

As increasing numbers\nof employees are using phones provided by their workplace, differentiating\nbetween business and personal use can become tricky. Where more than one device\nis used, or online calls are made on different devices, the picture can be even\nmurkier. HMRC has now published some additional clarification.<\/p>\n\n\n\n

The primary\nconsideration is that the phone benefit cannot be converted into money by the\nemployee. So, there is no tax charge on a mobile given to an employee or on any\nline rental. The cost of personal calls made on that phone paid by the employer\nis also tax free. Two connections to one mobile number, for example from\nanother SIM card, is regarded as one phone.<\/p>\n\n\n\n

A second phone, with\nits own number, however, does become chargeable. Where a phone is given to a\nrelative or other member of an employee\u2019s household, regardless of whether the\nemployee has a company phone themselves, there is then a tax charge, unless the\nrelative is also an employee of the same employer. There is also a tax charge\nwhere an employer reimburses an employee for using their own phone for business\ncalls. From the point of view of minimising tax across the board, it is already\ninadvisable for an employer to directly settle an employee\u2019s personal phone\ncontract directly, which results in a tax to the employee and national\ninsurance implications for the employer.<\/p>\n\n\n\n

Where multiple phones\nare involved, but a clear distinction is made between use for business and for\nprivate calls, then there is no tax charge. Oddly, where two phones are\nprovided for mixed use, only one of them needs to be chargeable, and employer\nand employee just need to agree which one that is.<\/p>\n\n\n\n

Primary purpose<\/strong><\/h3>\n\n\n\n

HMRC\u2019s guidance is\nalso trying to keep up with an increasing number of devices and apps able to\nhelp with making calls, including laptops and tablets. Where the main purpose\nof a device is to make calls, regardless of what other functions it may have,\nit is classed as a phone for tax purposes. However, if you have a tablet with a\nSIM card that can make calls, its primary purpose is not regarded as phoning,\nso there is no charge on it. With the range of sizes and applications across\nall such devices increasing all the time, these distinctions may become\nincreasingly difficult to maintain.<\/p>\n\n\n\n

If you\u2019re an employer, before providing your employees with any mobile phones, it\u2019s worth making sure that you are doing so in the most tax-efficient way. And if you\u2019re an employee, check with your employer for any liabilities.<\/p>\n\n\n\n

If you need further guidance, contact one of our Accounting & Business Advisory<\/a><\/span><\/strong> on 0114 266 4432<\/strong> or info@smhca.co.uk<\/a><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

If you\u2019ve received a new mobile phone from your employer for the new year, new guidance from HMRC on the taxation of the device may be useful.<\/p>\n","protected":false},"author":4,"featured_media":16711,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[461,464,463,11,460,19,462],"class_list":["post-19907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","tag-benefit-in-kind","tag-employee","tag-employer","tag-hmrc","tag-mobile-phones","tag-tax","tag-taxable-benefits"],"acf":[],"yoast_head":"\nCall you back \u2013 new HMRC guidance on taxing mobiles - SMH Group<\/title>\n<meta name=\"description\" content=\"If you\u2019ve received a new mobile phone from your employer for the new year, new guidance from HMRC on the taxation of the device may be useful.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Call you back \u2013 new HMRC guidance on taxing mobiles - 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