I’m at a bit of a loss as what to report on the P11d for my iPhone. My private use is far from incidental so I can’t really get away with that one. I pay a contact of around £43/month with the handset being provided “free” at the start. So to work out the value in use:
1. Take the greater of
· the asset’s annual value (20 per cent of it’s market value when you first provided it as an employee benefit)
· any annual rental or hire charges you pay for it.
Does the £43 include an annual rental or hire charge for the asset?
2. Add any other amounts you have spent during the tax year on making the asset available – such as any running costs you’ve covered.
Again, does this include all of the monthly payment?
Now obviously if my phone was a bog standard job I wouldn’t have any issue with reporting at all, so it does seem a tad unfair that I should have a benefit on the full annual cost of the iphone.
Thanks in advance
Mark