Income Tax (Earnings and Pensions) Act 2003 section 319

Mobile telephones

Section 319 provides an income tax exemption for the provision of one mobile telephone to an employee, subject to certain conditions and definitions.

• No income tax arises when an employer provides one mobile telephone to an employee, provided there is no transfer of ownership of the phone
• A mobile telephone is defined as a device not physically connected to a landline and not used solely as a wireless extension of a landline phone, including any SIM card or similar item used to access a public electronic communications service
• The exemption covers not just the handset but also the provision of access to a public electronic communications service through one mobile telephone number
• The exemption applies against both the general earnings charge and the residual benefits-in-kind charge, so neither route can be used to tax this benefit