Smart Phone - Benefit in Kind Rule Change
Discussion
From the ACCA website. It looks like HMRC are having a change of heart on the Benefit in Kind treatment of smart phones - which were previously excluded from their definition of a "Mobile Phone".
HMRC changes its view on smartphones for benefits in kind purposes
HMRC has updated its view on the interpretation of ITEPA 2003, s 319, which defines a mobile phone for benefits in kind purposes.
ITEPA 2003, s319 provides exemption from income tax where an employee or company director is provided with a mobile phone, without transfer of ownership, by their employer.
Smartphones were previously excluded from the definition of mobile phones as HMRC viewed them as being mini-computers, rather than mobile phones. HMRC have now changed their view on this and smartphones are now included within the definition of a mobile phone.
HMRC’s revised view opens the door for:
•employers to submit revised forms P11D/P11D(b) for 2007/08 onwards
•employees/directors to submit revised self assessment tax returns and/or claim a repayment of tax for 2007/08 onwards.
This is a very welcome announcement from HMRC; not only in terms of content but also in terms of its timing, i.e. just prior to the start of ‘P11D season’.
HMRC changes its view on smartphones for benefits in kind purposes
HMRC has updated its view on the interpretation of ITEPA 2003, s 319, which defines a mobile phone for benefits in kind purposes.
ITEPA 2003, s319 provides exemption from income tax where an employee or company director is provided with a mobile phone, without transfer of ownership, by their employer.
Smartphones were previously excluded from the definition of mobile phones as HMRC viewed them as being mini-computers, rather than mobile phones. HMRC have now changed their view on this and smartphones are now included within the definition of a mobile phone.
HMRC’s revised view opens the door for:
•employers to submit revised forms P11D/P11D(b) for 2007/08 onwards
•employees/directors to submit revised self assessment tax returns and/or claim a repayment of tax for 2007/08 onwards.
This is a very welcome announcement from HMRC; not only in terms of content but also in terms of its timing, i.e. just prior to the start of ‘P11D season’.
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