Expenses and benefits: mobile phones

What's exempt

You don’t have to report anything to HM Revenue and Customs (HMRC) or deduct and pay tax and National Insurance if both the following apply:

  • you provide your employee with only one mobile phone or SIM card
  • the phone contract is between you and the supplier

Salary sacrifice arrangement

You do have to report employees’ mobile phone costs if they are part of a salary sacrifice arrangement.