Introduction to this document

Mobile phone declaration

The old rule was that you could have as many mobile phones as you liked, tax and NI free. Now it’s down to one per employee. If you have more than one, you will need to declare which one is to be your tax-exempt phone.

Choose your exempt phone

The tax exemption for employees who are provided with a mobile phone changed on 6 April 2006. Directors/employees provided with more than one new phone by their company will need to consider which is to be the “exempt” phone and which the “taxable” phone. They can record this choice with a Mobile Phone Declaration. It will probably be for the phone they make most of their personal calls from. If the other phone is used strictly for business calls, then although in theory it’s taxable, there is no tax bill because there are no private calls.