Selling mobile phone to my company

[bigmaz]

Hi

I have just bought a mobile phone. But purchased it from my personal account. I am just wondering if I can sell it to my Ltd company? I have literally just bought it today. If so, how do I go about doing it? Do I produce a receipt for the transaction?

And do I sell it for the same amount that I bought it for? I bought it under the RRP.

Thanks in advance

[tractor]

...

Hi

I have just bought a mobile phone. But purchased it from my personal account. I am just wondering if I can sell it to my Ltd company? I have literally just bought it today. If so, how do I go about doing it? Do I produce a receipt for the transaction?

And do I sell it for the same amount that I bought it for? I bought it under the RRP.

Thanks in advance

Selling it to yourco is easy and yes, for the RRP.

Make sure you do the important part and change the account to be in yourco name and pay the bill direct from yourco because it is not claimable as an expense.

[Contreras]

Hi

I have just bought a mobile phone. But purchased it from my personal account. I am just wondering if I can sell it to my Ltd company? I have literally just bought it today. If so, how do I go about doing it? Do I produce a receipt for the transaction?

And do I sell it for the same amount that I bought it for? I bought it under the RRP.

Thanks in advance

Did you buy the handset outright, i.e. without a contract, with the intent it would immediately be a company asset? If so then by definition it already belongs to the company and the company owes you the money. Treat it as a company expense paid out-of-pocket and reclaim as usual.

If the handset is paid by contract, or you want the company to pay for all calls, then the contract need to be transferred to the company name.

[bigmaz]

Did you buy the handset outright, i.e. without a contract, with the intent it would immediately be a company asset? If so then by definition it already belongs to the company and the company owes you the money. Treat it as a company expense paid out-of-pocket and reclaim as usual.

If the handset is paid by contract, or you want the company to pay for all calls, then the contract need to be transferred to the company name.

Thanks for the replies. Yes, I bought the phone outright.

So do I simply transfer the money from my business account into my private account? Or do I need to do a receipt as well? And I pay myself market value of the phone? Even though I paid under the market value?

[TheCyclingProgrammer]

Did you buy the handset outright, i.e. without a contract, with the intent it would immediately be a company asset? If so then by definition it already belongs to the company and the company owes you the money.

Doesn't there need to be some evidence that the supplier knew OP was buying it on his company's behalf, e.g. An invoice in the company name? OP would be best asking their accountant how they should handle this - they may be willing to turn a blind eye or they may insist that the phone belongs to OP and should be resold.

[TheCyclingProgrammer]

Thanks for the replies. Yes, I bought the phone outright.

So do I simply transfer the money from my business account into my private account? Or do I need to do a receipt as well? And I pay myself market value of the phone? Even though I paid under the market value?

If you were to do as Contreras advised, it should be what you paid for it.

[bigmaz]

If you were to do as Contreras advised, it should be what you paid for it.

Cool. And do I need to write a receipt or something for a record of me transferring money for it?

[Contreras]

Thanks for the replies. Yes, I bought the phone outright.

So do I simply transfer the money from my business account into my private account? Or do I need to do a receipt as well? And I pay myself market value of the phone? Even though I paid under the market value?

1. You paid for the phone on behalf of the company. It's immediately a company asset and the company owes you the exact amount paid. The original purchase receipt is needed for the company books. Record it as a purchase, paid out-of-pocket. The company can simply transfer you the amount, or if left outstanding then it's effectively a director's loan to be repaid or offset at some point in future.
   
   
2. You bought the phone personally and then sold it to the company. It seems you want to sell it at a profit too. IMHO, market value is what you have just paid for it, not RRP. But yes, you now need to create a receipt for the transfer and potentially deal with a personal tax liability for any profit.

[bigmaz]

1. You paid for the phone on behalf of the company. It's immediately a company asset and the company owes you the exact amount paid. The original purchase receipt is needed for the company books. Record it as a purchase, paid out-of-pocket. The company can simply transfer you the amount, or if left outstanding then it's effectively a director's loan to be repaid or offset at some point in future.
   
   
2. You bought the phone personally and then sold it to the company. It seems you want to sell it at a profit too. IMHO, market value is what you have just paid for it, not RRP. But yes, you now need to create a receipt for the transfer and potentially deal with a personal tax liability for any profit.

Cool, I will transfer the amount I paid. Someone had said in passing that I should transfer the RRP amount. The shop is doing a one off deal, well chuffed, cannot get that price anywhere else

But yeah, it sounds dodgy making a profit on it... Lol

[SueEllen]

Cool, I will transfer the amount I paid. Someone had said in passing that I should transfer the RRP amount. The shop is doing a one off deal, well chuffed, cannot get that price anywhere else

Would an employer who is a medium or small company be happy to repay you the RRP or the price you actually paid?

These things aren't really hard to work out.