P11d - benefits

MarieNoelle
MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
Hi,
I wonder if someone on the forum can help.

A friend has asked me to explain why his P11D is showing a taxable benefit on box M "Other items" (brown box) - Home telephone rental. Nothing is showing in Expenses payment so I guess the employer has a dispensation with HMRC.
I explained that when he claims expenses for home telephone, the business phone calls are non-taxable but the rental is (I think?).

Now he says that he set up a specific line and broadband (with a different number to his home phone) exclusively for the business, from an outbuilding in his garden, and this was set up when the company was just starting in the UK (he was then the only UK employee). Now the UK company has grown and they have a proper office, but my friend has kept the extra phone line as he sometimes works at week end or takes calls in the evening.
My question is: As the cost for the rental of phone and calls is wholly, necessarily and exclusively for the business should he have to be taxed on it?

Thanks in advance for your input,
MN

Comments

  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    Doesn't sound taxable to me, if it was set up as wholly exclusively necessarily and he has a separate home phone line. He will need to take it up with his employer.
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Thank you Monsoon, that's the advice I'll give him.:001_smile:
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