The liability to pay a telephone bill falls on the subscriber. The appropriate tax treatment depends on who is the subscriber.
Employer is the subscriber
Where an employer applies for the provision of a telephone at the home of an employee it is the employer who is the subscriber, not the employee. The employer is the person who has to pay the telephone rental and other charges.
In these circumstances the employer is not bearing a financial liability of the employee and the amount paid is not ‘earnings’ within Section 62 ITEPA 2003 (see generally EIM00520 onwards).