HMRC now accept 'smartphones' qualify as 'mobile phones'

[Nixon Williams]

HMRC have now accepted that a smart phone can receive the tax treatment of a mobile phone.

So basically provided that your company provides you with just one phone, that the contract is in the company name and that the monthly payments are made from the company bank account, then HMRC will accept this with no extra tax liability on either the employer or the employee.

HM Revenue & Customs: Revenue & Customs Brief 02/12

[MrRobin]

Excellent. What about the purchase cost of the phone?

[Nixon Williams]

That iss fine, as with a normal mobile phone this costs would be allowable provided the conditions I described are met.

Alan

[northernladuk]

Very nice. Thanks for keeping us informed.

[ChimpMaster]

HMRC have now accepted that a smart phone can receive the tax treatment of a mobile phone.

So basically provided that your company provides you with just one phone, that the contract is in the company name and that the monthly payments are made from the company bank account, then HMRC will accept this with no extra tax liability on either the employer or the employee.

HM Revenue & Customs: Revenue & Customs Brief 02/12

Is it Ok if my friend has been expensing his iPhone for the past 4 years anyway?

[Nixon Williams]

Is it Ok if my friend has been expensing his iPhone for the past 4 years anyway?

Basically, yes!

[SimonMac]

What would the view be if I buy a SIM free device through the company, but not claim for line rental/calls as my device is mainly used for personal calls.

[northernladuk]

What would the view be if I buy a SIM free device through the company, but not claim for line rental/calls as my device is mainly used for personal calls.

The word 'mainly' makes a big difference. I got mauled in a thread not so long ago where the OP admitted 80% of use would be personal. I suggest he shouldn't claim it but the consenus seemed to be that if he used it at all for business it was open season to be paid for by the company. Still not in my comfort zone personally but other OP's seemed to think it was ok.

[MrRobin]

The word 'mainly' makes a big difference. I got mauled in a thread not so long ago where the OP admitted 80% of use would be personal. I suggest he shouldn't claim it but the consenus seemed to be that if he used it at all for business it was open season to be paid for by the company. Still not in my comfort zone personally but other OP's seemed to think it was ok.

WHS.

Plus... You're either in (whether legit or not) or you're out. Don't do a halfway house 'phone is company's but contract is personal'

[SimonMac]

The word 'mainly' makes a big difference. I got mauled in a thread not so long ago where the OP admitted 80% of use would be personal. I suggest he shouldn't claim it but the consenus seemed to be that if he used it at all for business it was open season to be paid for by the company. Still not in my comfort zone personally but other OP's seemed to think it was ok.

I don't want them to pay for line rental, I am happy to take the personal hit on that, just thinking about the up front cost of the handset, I guess I could be a cheap PAYG SIM card and stick £10 on it every 6 months which the company will pay for, but stick my personal SIM card in the phone.