What to do with old company mobile phones

[Guest]

Hello,

My company provides iPhones for all employees with an upgrade to a newer model every couple of years. Historically, whenever employees received their new phones they had been able to keep their old phones for their personal use, but now the company are saying that this isn't allowed for tax reasons (it could be viewed as an additional benefit) so are insisting that the handsets have to be sold back to the mobile provider.

I am trying to argue that we should allow employees to buy their old phones at the price the mobile provider is offering to pay for them. As far as I can see, the fact that the employee would be buying them at a fair market price would prevent any issue with them being seen as a benefit in kind.

Could anyone please confirm or deny my thinking?

Thanks in advance.

[pt2537]

one problem i can see here is the Data Protection Act, the phones would have to be reset for starters, otherwise you risk massive fines for breaching the DPA if other persons data is left on the phone.

[R0b]

If it's market price (assuming it has actually depreciated in value) I think it might be ok but there could be additional company obligations for the company for tax purposes.

You might find the link helpful or Ula could have an answer or at least point you in the right direction.

https://www.gov.uk/expenses-and-bene...-sold-or-given

[ULA]

The link that rob has provided is very helpful and to confirm Part A of the P11D form asks about "Assets transferred (cars, property, goods or other assets)" This is where any details would need to be put about the sale of company "old" mobile phones to staff