Mobile phones: the company contract rule
When you can and can’t claim a mobile phone as a tax exemption
The company can provide you with a mobile phone without there being any tax payable by you as an individual, or by the company, but only if it is done the right way round.
The rule
One phone per employee (including directors) is exempt from tax when the contract is in the company's name and the company pays the bill. Private use does not matter. The company claims the cost, and the VAT, in full.
The common mistake
Reimbursing your personally held contract does not qualify. The reimbursement is treated as earnings or a benefit in kind, with tax and National Insurance contributions to match.
If your contract is personal, move it into the company's name; most providers have a simple transfer process.
💡 Good to know: The exemption is one phone per person. A second handset provided to the same person is a taxable benefit in kind.
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