The employee receives a company phone: how does that work?

If you provide an employee with a company phone, this can be tax-exempt, provided the phone is necessary for business purposes (the necessity criterion within the work-related expenses scheme). Additionally, make agreements regarding private use, ownership, refunds, and data security.

The tax aspect: necessity criterion

Through the Work Expenses Scheme, you can provide items tax-free. For a company phone, the necessity criterion often applies: if the phone is reasonably necessary for the work, you can provide it tax-free without it affecting your tax-free allowance. Limited private use usually does not stand in the way of this. (The exact tax conditions may change; check this with your payroll department.)

Agreements regarding private use

Make clear agreements regarding private use: is it allowed, and to what extent? You will want to be able to intervene in cases of excessive or inappropriate use, high costs abroad, or the downloading of risky apps. Document this to avoid misunderstandings.

Ownership and return

The phone remains your property as the employer. Stipulate that the employee returns the phone at the end of employment (and in the event of long-term absence), and what happens in the event of loss or damage. Without agreements, disputes will arise regarding who bears the damage.

Pay attention to data and privacy

Business phones often contain company details and sometimes personal information. Arrange for security, data erasure upon return, and how you handle employee privacy if they also use the phone for private purposes. A phone policy in your employee handbook brings all of this together neatly.

Frequently Asked Questions

Is a company phone taxable?

Often not, if the phone is necessary for business purposes (necessity criterion). Limited private use usually does not stand in the way of this.

Is the employee allowed to use the phone for private purposes?

That is possible, but make agreements about it. Stipulate what is and isn't allowed and what happens in the event of high costs or misuse.

Does the employee have to hand in the phone?

The phone remains your property; stipulate that it must be returned at the end of employment, and what applies in the event of loss or damage.

Setting up a telephone policy?

Our legal experts incorporate the regulation into your employee handbook. View our employment lawteam or schedule a free consultation.