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- If you are a limited company director or employee, then you can have up to one mobile, landline or SIM card per director or employee as a tax-free benefit as per HMRCs Employment Income Manual 21779. And that includes the monthly contract costs and the costs of all phone calls, including private calls. Now, the key conditions that apply are number one, you must provide an employee or director with only one mobile, landline or SIM card. Number two the phone contract must be between your limited company and the phone provider. And number three, a mobile phone is defined by HMRC as a device that can make or receive calls. So smartphones are included but laptops and tablets are not even if you can make the OIP calls through them. Its actually worth mentioning that unless they are also a director or employee of your limited company business, you cannot provide a mobile phone to family members tax free. So lets suppose you are a company director and your company enters a 12-month mobile
