Where this is the case, Class 1 NICís and tax are payable via PAYE if you;
- reimburse the cost of the mobile telephone, service charges or the cost of private calls
- provide the employee with a voucher for use in relation to the mobile telephone or private calls made on it.
Where you reimburse the costs incurred by an employee in making business calls only on his or her own mobile telephone, you can ask for a dispensation. If you do not have a dispensation you must return the full cost to you on form P11D at section N. No Class 1 or Class 1A NICís are payable.
An alternative option you have is to provide these employees with a mobile telephone and enter into a service agreement with the telephone company there is no liability for NICís or tax. This applies to the provision of the telephone, the service and all calls.
By Jo Nockels
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