Expenses and benefits: mobile phones
2. 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.