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Where Taxpayers and Advisers Meet

Data allowance payment for personal phone

Joined:Wed Aug 08, 2018 11:06 pm
Data allowance payment for personal phone

Postby AngryVATman » Fri May 01, 2020 6:45 pm

An employee uses their mobile phone heavily for business purposes. Due to the fact that they are constantly exceeding their monthly data limit, they have suggested adding an extra £25 per month data add-on to their contract, which their employer will reimburse. They estimate that 90% of all their mobile usage each month is for business purposes.

Should this payment be subject to PAYE and NI, or can it be treated as a reimbursement of business expenses?

Joined:Wed Aug 02, 2017 9:09 pm

Re: Data allowance payment for personal phone

Postby darthblingbling » Sat May 02, 2020 10:33 am

PAYE and NI unfortunately.

If the business was to provide a phone contract in the name of the business it could be provided tax and ni free.

Joined:Tue May 05, 2020 2:41 am

Re: Data allowance payment for personal phone

Postby kayleycunningham » Tue May 05, 2020 2:51 am

yep its PAYE but it really depends if the company provides contract for you

Joined:Tue May 05, 2020 8:32 am

Re: Data allowance payment for personal phone

Postby JohnFinance » Tue May 05, 2020 8:57 am

Agree with darthblingbling, the easiest way is if the contract is with the business.

Although with 90% of the usage for business purposes there may be other options, such as you paying the supplier directly, but the employee holding the contract, or you could reimburse the monthly phone tariff, deduct and pay Class 1 National Insurance and PAYE tax through payroll.

This link might help -

Return to “PAYE and Payroll Taxes, National Insurance, NICs”