Employers should take care not to overlook the provision or reimbursement of mobile phone costs when determining whether a benefit in kind applies, as mobile phone costs are only exempt in certain circumstances.
A mobile phone will be exempt from reporting if the employee is provided with only one mobile phone or sim card, and the contract is between the employer and the supplier.
In all other circumstances it is important to check the reporting requirements, as costs may have to be declared either via the P11D or through the payroll and subject to tax and national insurance.
If you would like more information on employment benefits and P11Ds please contact us on 01633 871122.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.