Mobile workers have received a tax boost after HM Revenue & Customs (HMRC) changed its view on the tax definition of a mobile phone.

Previously, smartphones were excluded from tax exemptions as they were not primarily designed to make or receive voice calls, as required by HMRC.

But the department has now revised its guidance on smartphones, which means such devices can be provided to any number of employees without any tax or National Insurance Contributions (NIC) being payable.

This also means certain employees can make a claim for a refund of any tax and NIC paid to date, according to Deloitte.

James Warwick, a partner in the Big Four firm's employment taxes group, said the change is "good news for employees".

"It means there's no tax or NIC to pay on their first work mobile phone, regardless of how much the employee uses it privately," he added.

Phill Everson, a partner in Deloitte Technology Consulting, said enterprise mobility is quickly evolving and businesses will appreciate this tax change to recognise the wide use of smartphones by their employees.

However, he noted that the ongoing challenges are the security and technology to extend business functionality to smartphones and protect sensitive data.

Research published by Kantar Worldpanel ComTech this week indicated that 50.3 per cent of Brits now possess a smartphone device.

Posted by Alex Boardman