Mobile Phone -

you have two options claiming for mobile phone expenses:

  • Either you pay for it personally and the company reimburses you (but beware of PAYE/ NI charges); if the mobile contract is not in the company’s name, then only the business call charges over the monthly phone tariff or PAYG charges for business calls can be reimbursed tax free.
  • The contract is in the company’s name and the company pays the monthly bill directly to the provider (preferred option). If the contract is directly between the company and the provider, then the full cost is an allowable expense paid directly by the business. One mobile phone provided for private use is exempt from a tax charge on Employment Income. The exemption covers the phone itself, any line rental and the cost of private calls paid for by the employer on that phone.

Phones used solely for business purposes are exempt, and there’s no limit as to how many of these phones you can have; as long as the private use is minimal.

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