HMRC now accept 'smartphones' qualify as 'mobile phones'

[kingcook]

I just bought a new phone last week with my own cash (£400, sim-free).

Would be could if i could make this an expense to the company.

BTW i pay my own line rental. I use the phone for business calls (small number) but mainly personal calls. I plan (sometime in the near future) to develop Android apps.

[TheFaQQer]

other OP's seemed to think it was ok.

<pedant>Since OP = original poster, there can't be multiple OPs in a thread</pedant>

[TheFaQQer]

I don't want them to pay for line rental, I am happy to take the personal hit on that

Why not?

Regardless of NLUKs thoughts on whether it is covered or not, the HMRC guidance is clear:

In most circumstances the provision of one mobile 'phone to a director or employee for private use is exempt from charge. The exemption covers the phone itself, any line rental and the cost of private calls paid for by the employer on that phone.

Linky

You don't even have to have any business related calls - you are allowed one mobile phone per employee / director. Before 2006/07 you could also provide phones for family members as well.

[northernladuk]

<pedant>Since OP = original poster, there can't be multiple OPs in a thread</pedant>

[northernladuk]

I just bought a new phone last week with my own cash (£400, sim-free).

Would be could if i could make this an expense to the company.

What the f is this supposed to mean. I guess the fact The FaQQer didn't correct it means he didn't understand it either lol

BTW i pay my own line rental. I use the phone for business calls (small number) but mainly personal calls. I plan (sometime in the near future) to develop Android apps.

If you kinda read the first post of this thread you will find your answer

[Nixon Williams]

I am not sure why some people make this so confusing, HMRC have very kindly provided clear guidance on this subject and it can be quite generous, so our advice would be to take it up.

To repeat the posting I made:

HMRC have now accepted that a smart phone can receive the tax treatment of a mobile phone.

So basically provided that your company provides you with just one phone, that the contract is in the company name and that the monthly payments are made from the company bank account, then HMRC will accept this with no extra tax liability on either the employer or the employee.

Why make it complicated?

I am also happy to confirm the advice TheFaQQer posted:

You don't even have to have any business related calls - you are allowed one mobile phone per employee / director.

Alan

[SimonMac]

Thanks for the clarification Alan, one final question what is the deal with MiFi type data only packages?

(for example MiFi on Three)

[Nixon Williams]

Thanks for the clarification Alan, one final question what is the deal with MiFi type data only packages?

(for example MiFi on Three)

I am not familiar with this device, however this is what HMRC say on the matter:

HMRC now accepts that smartphones satisfy the conditions to qualify as 'mobile phones'. Developments in PDAs following the penetration of smartphones into consumer markets from late 2007 onwards mean that many modern consumer PDAs are now also likely to be smartphones. But this will not apply to devices that are solely PDAs.

It should be noted that this view applies to smartphones as configured and understood at the start of 2012. This is an area of rapidly changing technology and HMRC cannot be certain about the application of the definition of 'mobile phone' to new forms of smartphone.

It should also be noted that there are many types of devices that have telephone functionality which do not qualify as mobile phones. The definition does not cover apparatus that is designed or adapted for a primary purpose other than transmitting or receiving spoken messages, even if that apparatus is also capable of being used in this way.

Examples of apparatus that does not fall within the definition of a mobile phone include satellite navigation devices, devices that are solely PDAs and tablet and laptop computers. In general, devices that use Voice Over Internet Protocol ('VOIP') systems to make and receive phone calls will not satisfy the primary purpose test.

[SimonMac]

I am not familiar with this device, however this is what HMRC say on the matter:

I think its a no then, as they are incapable of "transmitting or receiving spoken messages"

[Lewis]

Alan,

So for smartphones that have already gone through the books as computer equipment (or whatever the category is - I can't remember off the top of my head). Can any adjustments now be made, i.e. presumably my iPhone is listed as an asset, so can that asset reclassified as an expense?

Cheers.