Next time you’re considering giving your employees a pay rise (or yourself as director or secretary) consider giving them a mobile phone instead!
Presuming the employer takes out the contract in the company name and provides just one phone to their employees then this is a tax free benefit to the employee – regardless of how many personal calls the employee makes.
An employee currently pays a £40 per month mobile contract. After having paid his tax (20%) and National Insurance (12%) this contract costs the employee £59 of their monthly gross wage!
Presuming the employer could secure a similar tariff in their name the cost to the employer might be just £27 per month (after VAT and corporation tax relief).