Fleet News

Tax alert over hands-free phone kits

THOUSANDS of drivers could have been paying too much tax because of a misunderstanding about the rules relating to mobile phones, fleets have been told.

When a new car has an aftermarket hands-free kit fitted, it is not considered a taxable option following changes to the rules several years ago.

HM Revenue and Customs advice points out that the provision of phones by an employer is not considered a benefit-in-kind.

This applies to other equipment, such as hands-free kits. But fleets throughout the country have been warned during meetings of Acfo, the fleet managers’ association, that some leasing companies were inadvertently adding the cost of a hands-free kit to the P11d price of their company car, which is then used to calculate a driver’s tax bill.

  • Details on the HMRC rules are available at www.hmrc.gov.uk by searching under hands-free or for ‘EIM21781 – particular benefits: hands-free mobile telephone kit’
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