Tax Free Incentive?
22/06/2010
Have you considered making an iPhone available to staff as a performance related incentive?
There is an exemption from tax where an employer provides a mobile phone to an employee, regardless of whether there is any personal use.
Whilst there is some question over whether an iPhone is a mobile phone or a computer, being classed as a personal digital assistant (PDA), if no other mobile phone is provided to the employee, then the main purposes of its provision would be for business use.
As many of these phones come with a package of free minutes and texts, the employer could have the option of recovering any costs over and above the monthly charge. Many also have reduced charges or possibly no charges on calls between numbers on the same network or in the same business, so there could even be some savings to be made.