UK Gifting mobile phones to employees ?


Joined
Feb 11, 2022
Messages
34
Reaction score
0
Country
United Kingdom
could anybody help please
every 2 years we take out a mobile phone contract package for employees , these costs get Expensed each month (against telecoms) nothing hits the asset register, the package is similar to a personal one in that the handset comes "free" as part of the package.
When the deal ends we shop around to find a new deal (and new handsets come with it again).
In the past we would sell the phones to employees (at market rate) for anyone who wanted one, any left would simply be left in work to rot basically.
We have a 2 year contract ending this month and the MD has asked if employees can simply keep their phones when it ends, at no cost - to gift them to employees.

Can we do this ? or do i need to charge employees who want their phones , or is it something i must ask the auditors about (although could open can of worms?)

The MD needs an answer from me

thank you for your help!
jay
 
Ad

Advertisements

Fidget

VIP Member
Joined
Jan 6, 2013
Messages
714
Reaction score
128
Country
United Kingdom
Nothing stopping you from doing it, but it becomes an employee benefit so there's a potential tax implication on the organisation for it (or the individual if the organisation doesn't want to pick up the tax bill).
 
Last edited:
Joined
Feb 11, 2022
Messages
34
Reaction score
0
Country
United Kingdom
What is the mechanism , do we just charge the employee the tax element on a company invoice , slightly unsure how we would do it
 

Fidget

VIP Member
Joined
Jan 6, 2013
Messages
714
Reaction score
128
Country
United Kingdom
A P11D to HMRC for each employee will show the value of the benefit and HMRC will do the tax collecting if the company isn't picking up the tab. Best speak directly with HMRC about the logistics of it.

We use PAYE settlement agreements (PSA) for employee benefits because the organisation picks up the employee & employer tax bill for them, so we don't do P11d submissions.
 
Ad

Advertisements

Joined
Feb 11, 2022
Messages
34
Reaction score
0
Country
United Kingdom
In the past we would raise an invoice to the employee so they had to pay market value for the used phone if they wanted to keep it . I take it that is still ok to do
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Mobile phones 9
Mobile Phones 0
Mobile Phone insurance 5
Mobile phone contract 11
UK Mobile phone contracts 2
Mobile Phone Costs 1
Mobile Phone on Invoice 0
UK Sale of a mobile phone 0

Top