EIM32935 | Other expenses: telephone charges: treatment from 6 April 2026 onwards

For the treatment of telephone charges from 6 April 2006 to 5 April 2026, please see EIM32940.

Section 336 ITEPA 2003 and Section 360B ITEPA 2003

From 6 April 2026 onwards, a deduction from earnings is no longer permitted under section 336 for an employee's additional household expenses. This includes home telephone costs. See EIM01474 for the meaning of household expenses.

Legislation instroduced at section 360B ITEPA 2003 prevents a deduction under section 336 ITEPA 2003 for telephone calls made in the performance of an employee's duties where the call is made using a telephone installed at the employee's home.

Relationship with exempt home working payments

The removal of this deduction should not be confused with the exemption under section 316A ITEPA 2003, which continues to apply to certain homeworking payments that employers may make. See EIM01472 onwards.

The removal of deductions for telephone charges incurred using a home telephone therefore only applies if the expense is not reimbursed.

Mobile phones

The treatment for mobile phones is not affected by the new legislation at section 360B, as mobile phone costs are not household expenses.

For the rules on mobile phones, see EIM32945.