Is your company being smart by giving you a phone?

Do you have a smart phone that has been paid for by your company or the company you work for?

I have been speaking with a client this week about the provision of phones to employees and the tax implications.

It is a little known fact that whilst provisions of mobile phones are an exempt benefit, this exemption does not apply to Blackberries, Iphones and other smart phones.

Such devices are therefore taxed in the same way as computers and will be taxable unless personal use is insignificant.

Moreover businesses need to have a policy in place to state that employees must keep personal usage to a minimum to avoid tax and reporting implications

Go away and check whether your company has a policy in place otherwise you could face a large taxable benefit at the end of the year.

Feel free to contact me for further advice

Mitch Young from Lerman Jacobs Davis, helping you and your business to count !!