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Tax refunds for Smartphone users

Smartphone users may be able to claim a tax refund following a recent rule change by HM Revenue & Customs.

Previously, HMRC took the view that smartphones, such as iPhones, BlackBerrys and other similar devices were not the same as conventional mobile phones, which can be provided tax free to employees, so that up until now smartphones have been treated as a taxable benefit in kind.

However, the taxman has now changed his mind and decided that they should not be treated as a taxable benefit.

This means that employees can now reclaim any tax they might have paid on a smartphone back as far as the tax year 2007/08, which could potentially amount to several hundred pounds.

An employer who provided a smartphone from 2007 onwards can also now get a repayment of Class 1A NIC paid on the benefit.

The new rules don't apply to tablet devices such as iPads, so that these may continue to be subject to tax.

If you want any further information or help in getting a tax refund please contact us as soon as possible.

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Clarke Nicklin House, Brooks Drive, Cheadle Royal Business Park, Cheadle, Cheshire, SK8 3TD. Registered Number OC309225.
The firm is registered to carry on audit work in the UK & Ireland. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001178544. The professional rules applicable are the Audit Regulations and Guidance which can be found at www.icaew.com/regulations, and the International Standards on Auditing (UK and Ireland) which can be found at www.frc.org.uk/apb/publications/isa.cfm.