Paying for iPhone from personal bank account

[ujjain]

On Contractors' Questions: Can I claim an iPhone as a company expense? :: Contractor UK it says that purchasing a mobile phone in your personal name means that you cannot claim the cost of the handset purchase as a company expense. However my accountant told me, that it's already possible to make expenses for the company, even though I'm still waiting for my company bank account.

Do all invoices need to have my company name on it?

I'm planning to buy an iPhone in the city today. Do I need to ask the Apple Store to create an invoice with my company name on it?

[Jessica@WhiteFieldTax]

There is no reason why you can't by an iPhone personaly and claim the hardware cost back from company as expenses. Company name on invoice is desirable but not essential.

The bigger issue is airtime. You can't claim fixed element of that back unless contract in company name, or, if PAYG, master agreement in co name.

[ujjain]

Right, that makes complete sense. If the mobile phone contract would be in my personal name, I would have to track every single call on my phone to expense it. Like I currently do with each single travel on my Oyster card, but maybe I should get two of those, a personal and business one.

In that case, I'll get the iPhone today and I'll contact Three, so I can expense 100% for the PAYG.

[TheCyclingProgrammer]

As Jessica says, there occasionally times where a company expense needs to be paid for personally and them reimbursed to you.

These are treated slightly differently from employee expenses (i.e. expenses YOU incur directly, like travel) in that you are essentially buying something on your company's behalf and the company is just paying you back.

As such, it doesn't need to go on your P11D. But personally I would want to have the invoice in the company name so it's clear that you've bought it for YourCo. If you're VAT registered and not on the FRS then I would have thought a valid VAT invoice in the company name is essential to support a VAT reclaim too, although that might not be relevant on your case.

Bear in mind that while the handset cost is fully allowable (either as a company expense or capital asset if you choose to treat it as one) any contract has to be in the company name for it to be an allowable expense otherwise it will be treated as a BIK.

If it's in your name or PAYG then you should only claim for business calls. You might find personal contracts are cheaper without the tax savings anyway.

Apple should certainly give you an invoice in the company name if you make it clear you are buying on behalf of your business. They will even give you a VAT invoice if you want one.

[Contreras]

If it's in your name or PAYG then you should only claim for business calls. You might find personal contracts are cheaper without the tax savings anyway.

For a company owned handset PAYG should be fine, IMHO. Top-ups paid for by the company directly and if the SIM is registered then done so in the company name.

Btw, there is HMRC guidance on PAYG mobiles but it relates to employee owned phones.

[TheCyclingProgrammer]

For a company owned handset PAYG should be fine, IMHO. Top-ups paid for by the company directly and if the SIM is registered then done so in the company name.

Btw, there is HMRC guidance on PAYG mobiles but it relates to employee owned phones.

Mm, interesting. I know the issue of the contract being in the employee name is to do with the whole "pecuniary liability" principle so I guess I can see how PAYG would fall outside this, as there is no debt being settled.

[PerfectStorm]

Paying for iPhone from personal bank account

Get your phone company to add your limited company name as the first line of the postal address. Then pay any ongoing contracts from the company account. Helps to make it a more business-looking cost.

And obviously, if you can buy the handset in company name/account too

[d000hg]

Get your phone company to add your limited company name as the first line of the postal address. Then pay any ongoing contracts from the company account. Helps to make it a more business-looking cost.

And obviously, if you can buy the handset in company name/account too

Except that your provider might have a clause in the Ts&Cs about that, or at the very least might say "you have to have a business account for a business phone".

[youngguy]

My phone has busted and I want a handset quickly to keep business continuity. Is there any issue picking a 2nd hand one up from eBay to tide me over until my next upgrade?

[Jessica@WhiteFieldTax]

My phone has busted and I want a handset quickly to keep business continuity. Is there any issue picking a 2nd hand one up from eBay to tide me over until my next upgrade?

No, thats fine. Expense it.