The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
Employers may provide employees with landline telephones, often in order to allow them to work from home. The provision of home telephone benefits is not covered by specific legislation. Instead, the nature of the costs, who is paying them, and the reason for the expenditure to determine the tax and NIC liabilities and reporting requirements.
The key considerations are who pays for the landline and who has the contract with the provider. Additionally, consideration should be given to whether tax relief is available if there are business elements of the benefit.
The most common arrangement is where an employee contracts with a telephone provider and pays the costs directly.
Where an employer reimburses an employee for the costs of line rental and private calls, these amounts should be treated as if they were salary. Therefore the full amount reimbursed should be included in payroll and subjected to both tax via PAYE and Class 1 NIC.
If the amounts reimbursed include expenses in relation to business calls, these amounts are allowable for a tax deduction (see the Calls in the performance of duties ― expenses treatment section below). Where the amount reimbu
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