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Smartphones such as iPhones, BlackBerry and many android-powered devices are no longer subject to tax as a ‘benefit in kind’, following a change in policy by HM Revenue & Customs (HMRC).
Unlike ordinary mobile phones, which can be provided tax-free to employees, smartphones were previously treated as a taxable benefit. Consequently, employers can now provide these devices to any number of employees without incurring a tax or national insurance contributions (NIC) charge.
Yet devices that only provide Voice Over Internet Protocol (VOIP) – a technology for making free or cheap calls over the Internet – will not qualify for the tax exemption.
This means that iPads and other tablet computers will still be subject to the old rules.
Contact Simpkins Edwards on 01392 211233 for further advice on tax-efficient benefits and expenses.
See the website on www.simpkinsedwards.co.uk. And download their app.
