Can I expense only a mobile phone handset

[GeorgeGeorge]

I am considering buying a new mobile phone handset through my limited company. I already have sim-only contract in my personal name, so the limited company would only pay a one-off purchase of the hardware; (no minutes, no contract).

I am unsure if this is acceptable. I have read HMRCs advice which mentions pay-as-you-go phones. This is similar, but not exactly right. I wouldn't be pay as you go.

So... is it ok to have my company pay only for the handset? Should I declare it somewhere?

[northernladuk]

Second mini question....
Suppose I was to then give the handset to my wife (who is not anything to do with my company). I suppose that would not be allowed?

What do you think? If you are up for abusing your limited company why bother asking the first question. Just put it through regardless.

I'd normally say ask your accountant but in this case id say definitely ask them. I'd love to see his face when you do.

Why stop there. I'll find a couple of recent threads about company cars so you can buy one and give it to her as well.

[GeorgeGeorge]

No thank you. I'm not up for abusing my limited company.

I'm trying to understand what I am supposed to do in this situation. Not interested in getting involved in any scams.

[Contreras]

Yes you can do that. The handset would be a company asset.

Since you are paying for the PAYG personally the company can reimburse you for business calls only. With a SIM-only (or PAYG) contract in the company's name the company could pay for all calls, max 1 handset to each employee, without incurring BiK.

[BolshieBastard]

Why would you buy a phone 'for yourself' through your company then give it to the wife? Its a clear dodge imo.

Nothing to stop you buying just the phone through your co and paying for the call plan yourself. I did and do this because my preferred provider doesnt do business plans.

[northernladuk]

No thank you. I'm not up for abusing my limited company.

I'm trying to understand what I am supposed to do in this situation. Not interested in getting involved in any scams.

So how do you think the company buying something for your wife's going to work?

[Scruff]

Yes. Full stop.

[TheFaQQer]

So... is it ok to have my company pay only for the handset? Should I declare it somewhere?

Yes. It's a company asset. Once it's depreciated to nothing, you can give it away.

[TheCyclingProgrammer]

Yes. It's a company asset. Once it's depreciated to nothing, you can give it away.

Bear in mind if the asset is given away to a director there are potential NIC implications. I can't see how it could be an issue in practice (just leave it on the company books) but I thought I'd mention it.

https://www.gov.uk/expenses-and-bene...-out-the-value