My employer is offering to pay for my home telephone. What are the implications?

Reimbursement of telephone charges for calls made during the course of your employment would be a legitimate expense and would not attract taxation.

Reimbursement of private calls made from your own home telephone would be considered a benefit by the Inland Revenue and would be subject to the Inland Revenue formula for calculating the appropriate 'cost of benefit', which then becomes a taxable item.

The provision of a mobile telephone is not regarded by the Inland Revenue as a taxable benefit.

The Regulations are complex and further advice can be sought from your local tax office.