Paying for iPhone from personal bank account

[TheCyclingProgrammer]

Just don't expect to be able to give it to your wife/kids/friends if they are not connected to the company

Although who's to say what happens to the phone once you've upgraded and "scrapped" the old one

[stek]

Although who's to say what happens to the phone once you've upgraded and "scrapped" the old one

I've 'lost' my last three!

[happyfeet75]

That is great CP thank you for taking the time to spell it out.

[TheCyclingProgrammer]

That is great CP thank you for taking the time to spell it out.

Of course, you don't have to listen to me. I'm not your accountant. I would be asking your accountant WHY he or she thinks you cannot buy the handset through YourCo.

[AnotherGuy]

What if the iPhone was bought before opening the Ltd company, and was used for personal use until the Ltd was opened and then after that some of the use is mixed as in personal/business use?

No contract in place, just PAYG sim. Unlocked phone.

Is then allowed to sell the phone to the company, and continue using it as usually, claiming only the business calls?

Thanks.

[JRCT]

What if the iPhone was bought before opening the Ltd company, and was used for personal use until the Ltd was opened and then after that some of the use is mixed as in personal/business use?

No contract in place, just PAYG sim. Unlocked phone.

Is then allowed to sell the phone to the company, and continue using it as usually, claiming only the business calls?

Thanks.

After getting advice on here and confirming with my accountant, I did this with my laptop. Went on Ebay or similar, found a price for comparison for a similar aged used model. Sold to company, kept screenshots as proof of value, transferred money to me.

[TheCyclingProgrammer]

Is then allowed to sell the phone to the company, and continue using it as usually, claiming only the business calls?

You can sell the phone to your company, but make sure its not for more than fair market value. And yes, continue as normal and only claim for business calls.

Or...just buy a new one through YourCo and treat yourself to an early upgrade.

[AnotherGuy]

You can sell the phone to your company, but make sure its not for more than fair market value. And yes, continue as normal and only claim for business calls.

I guess I could do the exact same thing (as JRCT pointed out) with my laptop as it also was bought before my Ltd was created, and it has a mixed use now. Or in this case it should be close to 100% business only? I use it aprox 50/50.

In any case, what is the procedure for "selling" something to my Ltd? I use IRIS OpenBooks (FreeAgent) if that matters. What is the "concept" to put in the books? I can ask to my Accountant of course.

Also, what happens if let's say in 3 months time I decide to get a new laptop or phone, and directly buy it through the Ltd? As then the Ltd will own 2 laptops and/or 2 phones...

Thanks in advance!

[ASB]

You can sell the phone to your company, but make sure its not for more than fair market value. And yes, continue as normal and only claim for business calls.

Or...just buy a new one through YourCo and treat yourself to an early upgrade.

It could be greater than fair market value; i.e. it's original price. This is where it was pre-trading expenditure (7 years if I recall). Thus if the phone was acquired in anticipation - and used in the furtherance of getting the business going - then a claim could be made at it's acquisition cost. If there is a valid vat receipt (even if not in the company name) then the vat should be reclaimable.

Would HMIT accept pre-trade expenses on a phone ? I see no reason why not. Laptops, plant, safety equipment, software etc has all be claimed.

Of course HMIT will only ever get their potential finger in the pie in an investigation anyway.

[ASB]

I guess I could do the exact same thing (as JRCT pointed out) with my laptop as it also was bought before my Ltd was created, and it has a mixed use now. Or in this case it should be close to 100% business only? I use it aprox 50/50.

In any case, what is the procedure for "selling" something to my Ltd? I use IRIS OpenBooks (FreeAgent) if that matters. What is the "concept" to put in the books? I can ask to my Accountant of course.

Also, what happens if let's say in 3 months time I decide to get a new laptop or phone, and directly buy it through the Ltd? As then the Ltd will own 2 laptops and/or 2 phones...

Thanks in advance!

Your business can spend its money on exactly what it pleases. Coke, hookers etc. Or it can waste it on boring things like laptops or phones. All that really matters is the tax treatment. The former 2 being somewhat less generous than the latter.

In the absence of specific exemptions - which do exist for a phone and laptop - then wholly and exclusively applies. This doesn't mean no personal use, it means that the personal use needs to be incidental.

Maybe you install Visual Studio (don't forget to claim the cost) on the laptop and use it develop your app for the phone then that should be OK. Play games on the laptop and phone substantially then probably not.

Of course, you only ever knows for sure after the years have passed or there is no complaint in an investigation.