Contact Us

You have a number of options where employees use their personal phones to make business calls, each with different Tax and National Insurance implications:

If you reimburse the cost of the mobile telephone, service charges or the cost of private calls, the amounts must be assessed through the payroll for Class 1 NIC and tax.  This treatment also applies where you provide the employee with a voucher for use in relation to the mobile telephone or private calls made on it.

If you just 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 from the HMRC. If you do not have a dispensation you must return the full cost you have incurred on reimbursing the calls on form P11D at section N. No Class 1 or Class 1A NIC is payable. The employee can then apply to the HMRC to advise that the payment is for expenditure incurred in the course of their employment and claim a refund for tax paid on this.

An alternative option is to provide these employees with a mobile telephone for business and enter into a service agreement with the telephone company. Then there would be no liability for NIC or tax. This applies to the provision of the telephone, the service and all private and business calls.

Date published 5 Dec 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. 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 article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free, no obligation consultation

0800 0523 555

Or contact us