Using Personal Mobiles for Business Use

Due to the nature of my business some of my employees are required to be on call 24 hrs per day, and consequently use their personal mobile phones to make business calls. How should I reimburse these employees for the cost of the business calls they make?

1st June 2008

Where this is the case, Class 1 NICís and tax are payable via PAYE if you;

  1. reimburse the cost of the mobile telephone, service charges or the cost of private calls
  2. 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

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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