SE21780 - Benefits: mobile telephones

Section 155AA ICTA 1988

The provision of a mobile 'phone to a director or employee is exempt from charge under the provisions of Part V Chapter II ICTA 1988.

The exemption covers the telephone itself, any line rental and the cost of private calls paid for by the employer on that telephone.

The exemption only covers the tax charge under the benefit in kind rules in Part V Chapter II ICTA 1988. It does not cover other situations where a tax charge may arise in respect of a mobile telephone. A Schedule E charge will still arise if

• the employer reimburses the employee for calls made on his own mobile telephone ( SE00580) or
• the employee can give up the telephone and get a higher cash wage or salary ( SE00570) or
• the employer provides a voucher ( SE16000 onwards) for a mobile telephone or for calls.
• See SE21781 for information on mobile telephone “hands-free kits” in cars.