Company phone: what you need to know

Necessity criterion for a company phone

Passing on costs of a company phone

What is the Work Related Costs Scheme?

In the past, employers had to navigate a variety of rules for business and personal reimbursements. Since the introduction of the Work Related Costs Scheme, the tax rules for company phones have become much clearer. This scheme, in effect since 2015, allows employers to provide tax-free reimbursements and benefits to employees with the aim of simplifying tax regulations related to employment terms. A key component of the scheme is the tax free allowance. This is a percentage of the total taxable wage bill (the gross salary of all employees) that employers can use for tax-free reimbursements or benefits. The following percentages apply for 2024:

• 1.92% of the wage bill up to €400,000 can be provided tax-free.
• 1.18% of the wage bill above €400,000 can be provided tax-free.

If you exceed this tax-free allowance, you will incur an 80% final levy on the amount that surpasses the limit. You can also make use of targeted exemptions. A targeted exemption allows you to reimburse, provide, or make available certain items, such as a mobile phone, without incurring taxes. These exemptions do not count towards the tax-free allowance. Feel free to contact us if you have any questions.

Flexible options for a company phone

For many employees, a company phone is an attractive secondary benefit. However, managing the budget and ensuring a fair distribution among employees can often be complex. Through NGU’s platform, you, as an employer, can easily allocate a selection budget to your employees, which they can top up themselves via iDeal if desired. They can then choose a smartphone model they prefer from your online company store (e.g., Samsung or Apple), including accessories like screen protectors and cases. The ordering process is smooth, and the phone is delivered to their workplace, home, or any other preferred address. Want to learn more? Feel free to contact us!