Question:
My company has a number of mobile telephones and most of these are one each for employees. However I want to provide two mobile phones for my grandchildren who are not employees and will never be employees. Can I claim tax relief on these two phones?
Arthur Weller replies:
See HMRC’s guidance
(www.hmrc.gov.uk/manuals/eimanual/EIM20504.htm) that a benefit provided to the family of an employee is chargeable for income tax on the employee. Although grandchildren are not listed there, they are certainly included in this. Since the benefit is chargeable on the employee like wages, it will be allowed (within reason) as an allowable expense for corporation tax for the company.
