Tax Treatment of Smartphones has Changed

HMRC has recently announced that it has changed its mind about the tax treatment of smartphones. 

Up to now, they have argued that smartphones were not "mobile phones" and were thus potentially taxable as a benefit in kind if provided to directors or employees by a company. The accountancy and tax profession has long argued against this viewpoint and has often turned a blind eye to companies which have provided smartphones and not sought to declare these items on forms P11D.

HMRC now accept that smartphones are not generally a taxable benefit and can be treated as a "mobile phone".

For more information on this, you can see HMRC's statement by clicking here

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