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Thousands in UK Can Claim Tax Refunds on Smartphones Provided by Employers

After a rule change by HM Revenue & Customers, smartphones owners who have received the device from their employers can reclaim their money in refunds.

Earlier, HMRC claimed that smartphones like Blackberry, iPhones and Android powered devices are different from the conventional mobile devices. Thus, they are subjected to tax as "benefit in kind" in case they are provided by employers and can be used outside work. However, the tax authorities now have declared that they are "happy" to waive off the tax on modern technology.

By welcoming the HMRC move, a partner at James Cowper, Chris Lee, stated that, "HMRC has finally woken-up and found itself in the 21st Century. Smartphones are in many cases an indispensable business tool and it is right that they should not be treated as a taxable benefit." reported The Telegraph.

This announcement comes as the number of smartphone devices has went up dramatically in UK. According to Ofcom, the telecom regulator, estimation a quarter of all the adults in the country and 47 per cent all the teenagers have smartphones now.

However, the tablet computers like iPads are out of the purview of these new rules. In fact, those devices which utilises Voice over Internet Protocol (VoIP) are most probably not the devices waived off from tax by HMRC.