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Mobile telephone

  • 182 posts
  • # 101250

I am working for a company limited by guarantee (similar to a charity). They are all unpaid volunteers and they have no phone land line. They use their own personal mobile phones. These are obviously not taxable as the volunteers are not paid employees.

They have taken on two paid employees who both need a phone for what they do. The company is wondering about giving them some money on a regular basis to cover the extra costs of each of them using their own mobile phones. I think it is an arbitary amount of money regardless of the number of phone calls they make

I'm puzzling about whether this would be taxable income that should either be run through PAYE or put on a P11D. I think neither of these would be relevant as the money is not taxable as it is not a 'perk' for their own purposes but I thought I would seek further guidance on the matter.

Thank you

Peter

 

  • Member
  • Practice Licence
  • 119 posts
  • # 101251

Hopefully this will explain it:

https://www.gov.uk/expenses-and-benefits-mobile-phones/overview

Come back if you have any more questions.



Edited at 30 Aug 2014 08:21 AM GMT

  • Member
  • Practice Licence
  • 119 posts
  • # 101252

PhilCo said:


 



Edited at 30 Aug 2014 08:21 AM GMT

  • 182 posts
  • # 101321

Thank you for your reply

I half expected it to be taxable as the URL seems to suggest

But could you give me a reason why as is payment for expenses - it is not a perk.

Peter

  • 794 posts
  • # 101323

Hi Peter,

Providing only the business calls are reimbursed there is no tax or NI to pay.

The info would have to be reported on a P11d at the end of the tax year but there would be no charges payable.

The best way round this is to apply to HMRC for a dispensation which means you would not need to submit a P11d.

Marilyn

  • 182 posts
  • # 101325

Thanks Marilyn

This of course is what I wanted to hear and also seems common sense but the URL doesn't seem to allow it. Am I misinterpreting? Or is there another rule somewhere?

Peter

 


  • 794 posts
  • # 101331

Hi Peter,

The URL does explain it better if you keep going onto the NEXT section each time as I have just checked it.

Marilyn

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