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Mobile phone expenses reimbursed, should be taxed?

shahmeer75
Posts: 3 Newbie
Hi All,
Our outsourced payroll has filled my P11D for £653 per year while my mobile and monthly contract in my name is around £24 per month. Bill usually goes over £24 per month because of international business calls. As this has been filled in P11D, they are deducting NI and tax on it. I contacted the payroll and person said "[FONT="]In accordance with HMRC rules any amount included on form P11D regarding mobile phone will be where the mobile is in your name not the companies name and will only include line rental, plans or packages and not business calls, unless no receipt has been made available in which case the full amount is taxable and any amount you deem to be business related should be claimed back on your tax return if you complete one" [/FONT] My understanding is that £24 per month contract is for business use and including any bills for international calls. They should not deduct any tax from it. Can someone guide me please?
Our outsourced payroll has filled my P11D for £653 per year while my mobile and monthly contract in my name is around £24 per month. Bill usually goes over £24 per month because of international business calls. As this has been filled in P11D, they are deducting NI and tax on it. I contacted the payroll and person said "[FONT="]In accordance with HMRC rules any amount included on form P11D regarding mobile phone will be where the mobile is in your name not the companies name and will only include line rental, plans or packages and not business calls, unless no receipt has been made available in which case the full amount is taxable and any amount you deem to be business related should be claimed back on your tax return if you complete one" [/FONT] My understanding is that £24 per month contract is for business use and including any bills for international calls. They should not deduct any tax from it. Can someone guide me please?

0
Comments
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Post on the "cutting tax" board - but as I understand it if the contract is in your name then you're liable for the charges except for business calls which probably need to be itemised. If you only use it for company business the contract should be in the company's name, then there would be tax liability at all. In fact they could even allow you to use it for personal use with no tax liability, a lot of companies allow "reasonable" personal use.0
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