Mobile phone/ P11D

TheCat_2

Hi all,

Looking for some advice regarding expenses and benefits in kind.

I was part way through a personal mobile phone contract when I joined my current employer as I a) needed a phone for work and b) other employees were provided phones, my employer agreed to reimburse the monthly cost rather than supply a second 'business' handset.

This originally seemed fair as it put me on a financial par with other employees enjoying limited personal use on a fully subsidised handset

However, I felt that 'as I had signed the contract it was my responsibility' so I agreed that if my employer covered just the tariff, I would cover all call charges and data outside of the inclusive minutes.

This has worked smoothly all year - them paying £35/m and me covering any difference.

Unfortunately, after querying some CIS issues with HMRC, my employer has been told reimbursing my mobile costs represents a benefit in kind and should be declared via P11D.

I'm happy to reabsorb the cost of my original contract but then I am approx £35/m worse off than other employees with business mobiles.

Additionally, I really don't want to go down the route of having them supply a paid for business mobile and me running a separate personal contract.

For clarity my employer is not reimbursing any direct call charges (business or personal) just the underlying £35 tariff (which includes 600 cross network minutes)

Can anyone clear up whether our current arrangement does represent a P11D issue or has my employer misunderstood info given to him in a perhaps incomplete HMRC conversation?

It's come to a head now as I'm looking to renew my now expired contract in an imminent upgrade and my MD is trying to dissuade me as the cheaper option for me is for them to port my number into their business contract but that means no new handset and potentially lose of control over a tel no I've kept since 1999

00ec25

it is expenditure which you would (were) otherwise pay yourself so yes it is a benefit in kind, you are no longer paying it , your employer now is

I actually prefer having a dedicated business mobile even if it does mean having 2 handsets on me

BTW the tax you'd pay on £35pm is only £7 p/m (20%) or £14 (40%) which may be a price worth paying if it is too inconvenient to have 2 handsets and lets you keep your 1999 number?