Employers pay £400m a year for personal calls on company mobile phones

Employers are footing a £400m annual bill for their employees to make personal calls using company mobiles, according to a report.

Research conducted by telecoms billings service Aurora Kendrick James, found that personal calls account for between 20% and 25% of all calls made on company mobiles.

Jeremy Green, principal analyst at telecoms consultant Ovum, said more than three million corporate mobile phones in the UK attract an annual bill of £1.7bn, which means that personal calls can total up to £340m and £425m.

Aurora Kendrick James pointed out that the implications of making personal calls on company mobiles included breaking tax laws by reclaiming VAT on the total mobile phone bill, instead of the business element only.

It means that potentially some £150,000 is being incorrectly claimed from the Exchequer every day, according to the firm.

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Matt Atkinson, managing director Aurora Kendrick James, said: “Education and visibility of costs to users are pivotal in successful mobile expense management. By having a company policy in place and introducing employees to it, staff can be made accountable for their costs against sensible guidelines.”