Mobile phone battery - p11d treatment

[SueEllen]

You're wrong

As long as you supply one phone and the contract is in the company name, the phone can be used for business and personal use.

In his case he can be wrong as he isn't the OP's or our accountant.

The links below prove how wrong he is -

Linky on mobile phones, booklet 480 on how expenses are allowed linky (chapter 22) and information about the original notice on smartphones.

[TheCyclingProgrammer]

You would like me to be wrong but in fact you are wrong.

There is no charge to tax where the phone is used for business and private calls are insignificant.

Where the phone is used both personally and for business the duality of purposes rules means that there is a charge to tax via Form P11D.

I've included a link to S.336 of ITEPA 2003 for your information:

Income Tax (Earnings and Pensions) Act 2003

Try to read the legislation before calling someone wrong.

No, he is right. One phone can be provided for both business and personal use with no reporting or tax implications.

There is no limit on the number of phones that can be provided for business use only, so long as the wholly and exclusively rule is met (and any personal use is insignificant as per s316). Therefore the normal asset rules apply to additional phones, but not the first one as this is exempt under s319 so long as the phone (and any contract) is in the company name.

If your accountant hasn't told you this, perhaps YOU should get a new accountant?

Try reading the legislation before you call someone wrong (you were only three sections away):

http://www.legislation.gov.uk/ukpga/2003/1/section/319

https://www.gov.uk/expenses-and-bene...s/whats-exempt

http://www.hmrc.gov.uk/manuals/eimanual/EIM21779.htm

[mudskipper]

You would like me to be wrong but in fact you are wrong.

There is no charge to tax where the phone is used for business and private calls are insignificant.

Where the phone is used both personally and for business the duality of purposes rules means that there is a charge to tax via Form P11D.

I've included a link to S.336 of ITEPA 2003 for your information:

Income Tax (Earnings and Pensions) Act 2003

Try to read the legislation before calling someone wrong.

Generally, that is true. However, mobile phones are exempt from the legislation, as long as only one phone is supplied and the phone is in the company name.

https://www.gov.uk/expenses-and-bene...s/whats-exempt

https://www.gov.uk/government/upload...8/480_2015.pdf - see page 83.

22.4 which refers to no significant private use is only relevant where more than one phone is provided - it makes it clear that a single phone does not have to pass this test.


Edit: missed the replies from SueEllen and TCP - what they said!

[BolshieBastard]

It's not the money it's the principle.

I would get a new accountant as it's clear your accountant is stuck in the technology dark ages.

Your accountant should only be querying you on things that clearly could have no business use. A mobile/smartphone battery, a battery pack or even a usb cable clearly has.

My accountant only queries me on courses and once he sees the course name leaves me alone.

I was going to post that yesterday but my post was less polite than those who already posted and the above.

Behave yourself! I wouldnt even consider claiming this. In fact, I dont even claim for the cost of my mobile phones which would save considerable more than a couple of quid on a ten quid battery.

Im pretty sure my accountant would allow the 10 quid claim but even if he didnt, I know his overall advice is what keeps the taxman at bay but, each to their own I suppose.