UK businesses losing £1million a day on personal phone calls

12 June 2007
Workers in the UK spend around £400million every year talking to their friends and family on mobile phones paid for by their employer, according to research by telecom expense management specialist Aurora Kendrick James.

The cost not only cuts into the profits of British businesses, but could also put them at risk of breaking tax regulations. Businesses are only supposed to claim back VAT on business calls, but many may be inadvertently claiming for personal calls too.

The research claims that personal calls account for between 20 and 25 per cent of all calls made on company mobiles.

There are around 3 million corporate mobile phones in use in the UK with an annual bill of around £1.7 billion - that means that personal calls cost between £340 million and £425 million.

According to Aurora Kendrick James, very few businesses actively monitor and manage personal usage.

Matt Atkinson, managing director at Aurora Kendrick James stresses the importance of implementing a company policy and publishing guidelines on mobile phone usage to educate employees on the potential costs and the importance of mobile expense management by individuals.

"Implementing a mobile expense management policy will control and reduce personal usage but will also help with VAT compliance, validating invoices, tariff negotiation, management and inventory reporting; all of which will mean a more cost effective and controlled mobile estate."

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