However, the HMRC have recently reviewed their position regarding the new wave of smartphones. This includes iPhones and Blackberry's. As smartphones combine the function of a mobile phone with that associated with a computer, HMRC do not consider such devices are a mobile phone for the purposes of exemption under Section 316 ITEPA 2003.
If the equipment is supplied to a director or employee for business purposes and any private use is 'not significant', it will be exempt for tax purposes, in the same way as a mobile phone. HMRC have not provided a definition of significant nor have they yet challenged the provision of a smartphone.
Smartphones supplied on the same terms as a mobile phone, i.e for business use (personal use is incidental), or replacing a mobile phone previously supplied for business use then a P11D entry will not be required and there should not be any tax consequences.