Expenses and benefits: home phones
Work out the value
The value to use depends on who arranges the employee’s telephone line.
If you arrange the telephone, the value for reporting and National Insurance is the total cost of line rental and all call charges (business and private).
If your employee arranges the telephone but you pay the supplier, you must:
- report the cost of line rental plus all call charges (private and business)
- pay National Insurance on the cost of line rental plus private call charges only
Salary sacrifice arrangements
If the cost of the line rental and all call charges (private and business) is less than the amount of salary given up, report the salary amount instead.
These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.