Good news for Business Owners – Smartphones are tools not luxuries!
HMRC are waiving the requirement to pay tax on Smartphones provided to staff in businesses. Recognising that Smartphones are an important business tool, like a mobile, means that they should not be classed as a ‘benefit in kind’.
In the past, Smartphones were not placed in the same bracket as traditional mobiles- which have always been tax free. Smartphones were always looked upon as personal digital assistants, their purpose essentially not a channel of conventional communications, i.e. making and receiving calls.
Since the growing awareness of technological advances and continual increase in usage and popularity of Smartphones as the Mobile of choice, nevermind the benefit to businesses with the added functionalities that Smartphones provide, HMRC has since acknowledged that they can be classed under the Mobile Telephone bracket.
Great news for tax payers who can now reclaim hundreds of pounds in tax refunds from previous years of paying the required tax on Smartphones. Many may have assumed the tax free position of Smartphones however those who did not, can simply contact HMRC and seek repayment.
This is another example of how Smartphones are slowly emerging as the mobile of choice across the nation. There is resounding evidence that they do not have to be an expensive luxury that you award your staff and HRMC’s decision to renege on this Tax compulsion just goes to show how beneficial businesses are seeing the provision of Smartphones to their employees.