Paying for iPhone from personal bank account

[TheCyclingProgrammer]

I have purchased my last three iPhones via my LTD, in all three instances I have purchased them on my personal card (hey...gotta love those points/cashback deals) and then completed a "transfer of assets" form which basically transfers ownership of said device to MyCo with all that entails.

Is this even necessary if you place the order (and get an invoice) in the company name? I would have thought if the invoice was in YourCo's name and you paid for it on a personal card, it would be effectively like you lending the money to YourCo, i.e. you could simply reimburse yourself from the company account (no P11D implications either as you've paid for something on behalf of YourCo). I think the fact that it is invoiced to the company is enough to show it belongs to the company even if it was initially paid for by you.

I had to do this for one of my phones as my debit card wasn't being accepted when I placed the order - I simply stuck it on my personal card and claimed it back from MyCo (order and invoice was clearly in company name and also had company VAT number on it).

I used to be on a Three SIM only deal but did agree to a 12 month contract last year after haggling with them on the phone over unlimited data and more minutes.

[AnotherGuy]

I have purchased my last three iPhones via my LTD, in all three instances I have purchased them on my personal card (hey...gotta love those points/cashback deals) and then completed a "transfer of assets" form which basically transfers ownership of said device to MyCo with all that entails.

Any website where I can find information on how to accomplish this?
In my case, it is an iPhone purchased before creating my Ltd, so I purchased it personally and I have the VAT receipt.

I'm sure I will not be able to transfer it to the company at whole price tho, as there is now a new model in the market (6S) that effectively devalued mine.

[TheCyclingProgrammer]

Any website where I can find information on how to accomplish this?
In my case, it is an iPhone purchased before creating my Ltd, so I purchased it personally and I have the VAT receipt.

I'm sure I will not be able to transfer it to the company at whole price tho, as there is now a new model in the market (6S) that effectively devalued mine.

As somebody explained on the previous page, it is possible to claim for pre-trading expenditure. You can also simply sell the device to YourCo. Speak to your accountant about the details and whether or not you can reclaim the VAT too.

[ContrataxLtd]

Is this even necessary if you place the order (and get an invoice) in the company name? I would have thought if the invoice was in YourCo's name and you paid for it on a personal card, it would be effectively like you lending the money to YourCo, i.e. you could simply reimburse yourself from the company account (no P11D implications either as you've paid for something on behalf of YourCo). I think the fact that it is invoiced to the company is enough to show it belongs to the company even if it was initially paid for by you.

I had to do this for one of my phones as my debit card wasn't being accepted when I placed the order - I simply stuck it on my personal card and claimed it back from MyCo (order and invoice was clearly in company name and also had company VAT number on it).

I used to be on a Three SIM only deal but did agree to a 12 month contract last year after haggling with them on the phone over unlimited data and more minutes.

There is a risk here that should be explored. If the phone is purchased in the company name and simply paid on a personal card I see no issue with this being reimbursed, no tax issues as the director has simply paid for the phone on behalf of the company and is being reimbursed for it.

However, if the phone is purchased in a personal name and then transferred to the company ('Transfer of assets form' as ThomserveBAS mentioned) then is this actually a sale to the company from a connected person and as such not eligible for AIA (100% tax write off in year one) but only WDA at 18% per annum, thus reducing the tax saving up front.

You could argue the phone isn't an asset to avoid this and in most circumstances I could probably argue this both ways, depending on the outcome that is needed but I can't help to think this is something HMRC would question is they wanted to dig their claws in!

This principle applies when anything is purchased personally and 'sold' to the company, especially items purchased pre trade where they can't be justified as pre trading expenditure.

Martin
Contratax Ltd