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Section 319 ITEPA 2003

»Ê¹ÚÌåÓýapp exemption for mobile phones in Section 319 was substantially amended by Finance Act 2006 - see EIM21778 and EIM21779 for the revised rules for 2006/07 onwards.

»Ê¹ÚÌåÓýapp provision of one mobile phone to a director or employee is exempt from charge under the benefits code (see EIM20006). »Ê¹ÚÌåÓýapp exemption covers the telephone itself, any line rental and the cost of private calls paid for by the employer on that telephone.

For years up to and including 2005/06

Before 2006/07 the exemption only covered the tax charge under the benefit in kind rules in the benefits code. It did not cover other situations where a tax charge may arise in respect of a mobile telephone.

For example an employment income charge still arose if:

• the employer reimbursed the employee for calls made on their own mobile telephone (see EIM00580), or
• the employee could give up the telephone and get a higher cash wage or salary (see EIM00570), or
• the employer provided a voucher (see EIM16000 onwards) for a mobile telephone or for calls.

Definition of a mobile phone before 6 April 2006

Equipment (including equipment installed in a car) that could be used to transmit spoken messages and that was not connected to a land-line.

Cordless and telepoint telephones were specifically excluded because of their close dependence on land-lines.

»Ê¹ÚÌåÓýapp definition of a mobile phone is revised for 2006/07 onwards - see EIM21779.

Personal Digital Assistant (PDA)

For information on Personal Digital Assistants, see EIM21701.

Smartphones

For information on smartphones see EIM21779.

Hands free mobile telephone kit

See EIM21781.