The tax relief available for mobile phone expenditure is dependent upon the type of business which is undertaken, be it limited company or self-employment.

Limited companies mobile phone tax relief

Mobile phones represent one of the best perks available for employees of limited companies. Provided the mobile phone contracts are in the company’s name, there are no tax implications for the employee. The employee has full use of the mobile phone (including private calls) without incurring any tax charge. The limited company is also able to obtain tax relief against its profits for the costs incurred.

Self-employed

A self-employed individual is only able to claim tax relief for the proportion of the mobile phone costs which relate to business use.

Action plan

For further assistance in this matter, or any other issues relating to owner managed businesses, please phone Shacklefords Chartered Accountants on 0121 448 7466 or e mail info@shacklefords.co.uk