The Telegraph: Money

Mobile users ring up tax benefit By Nina Montagu-Smith

A firm of accountants has devised a way for companies to provide workers with mobile phones courtesy of the taxman.

BDO Stoy Hayward has extended an existing tax scheme which enables employees to buy computers out of untaxed income. The new mobile phone scheme, which will allow workers to pay mobile phone bills out of their gross income, could save employers and employees hundreds of millions of pounds.

According to the glossy brochure, the "Flexphone" scheme could save workers up to 41pc on their mobile phone bills. Stoy Hayward has devised the scheme with Isis Telecommunications.

Employees give up a proportion of their gross annual salary in return for the use of a company mobile phone. Employees can buy and run up to five handsets using any network, provided they are for personal use or use by family members.

The reduction in annual gross salary means a reduced National Insurance contribution for the employer.

BDO Stoy Hayward even provides employers with a facility to offer workers a selection of different phones, including "phones for the family" and handsets that are delivered to the workplace.

The firm said a company which employs 1,000 people using mobile phones would save more than £60,000 per year. The brochure states: "A great deal of thought has gone into the design of Flexphone to ensure that the tax foundations are sound."

The Inland Revenue said it could not comment on individual tax avoidance schemes. Under the new tax avoidance scheme regime, all such schemes have to be reported to the Revenue by the accountancy firm or solicitors who design and market them.

To find out more about Flexphone email info@flexphone.co.uk or call 0845 408 2035.

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