Businesses who pay for an employee’s smartphone as a perk may not be doing them as smart a favour as they think, a tax expert warns today.
For the provision of a phone is only tax free when the contract is between the employer and the supplier, Brian Gooch, tax manager at Sheffield-based independent chartered accountants Hawsons, says in a list of tax pitfalls for companies.
If the individual employee arranges the contract with the supplier and the employer pays the bill, it is neither tax or NIC free.
Brian adds:“In this particular situation, the individual as well as the company would be liable to NIC.”
For further information on this, contact Brian at: email@example.com