These questions are being answered by Learn HR, a market leader in the provision of HR and payroll training and nationally-recognised professional qualifications.


Q: Does the tax exemption for mobile phones extend to paying the costs of our employee’s own phones?

A: Section 319 of the Income Tax (Earnings and Pensions) Act 2003 specifically removes any liability for income tax on the provision of a mobile phone that is placed at the disposal of an employee or a member of the employee’s family or household.

The exemption applies to the telephone itself, to the rental and call charges met by the employer under a contract between the employer and the service provider and, if the phone is installed in a car, van or heavy goods vehicle, to any associated hands-free kit and installation costs.

There is no condition imposed relating to the extent of the use of the mobile phone for private use. The exemption applies if it is provided exclusively for private use.

However, there are a number of other situations where the exemption does not apply.

View all our HR tips: