Selling/replacing company-owned smartphone

[CloudWalker]

Buy phone outright through business. (Unlocked)
Pay business calls through business. (Or all calls if contract in company name)
Replace phone when new model comes out. (Every 2 years average)
Write off old phone (eBay, spares) 👍

[SueEllen]

Did you read the page I linked to on balancing charges?

If the item wasn't treated as an asset, then its a simple sale and YourCo accounts for VAT and CT on the sale.

If it was an asset, YourCo accounts for VAT and has to account for any balancing charge on the profit (effectively the difference between what you claimed in capital allowances and what you've sold it for, or the market value if sold for less).

If you want to do this properly, why don't you speak to your accountant?

If you aren't bothered, why don't you take some time to think about it and make sure you don't accidentally lose the device in the meantime.

I think you mean drop it down the toilet so it's useless.

[Spoiler]

Just researching options on this one - before I "ask my accountant":

Maybe looking to dispose of a company asset before it's fully depreciated - a phone !

Assuming I could sell it, but would then need to include VAT in the sale.

Assuming it could be part-exchanged as part of the transaction of buying a new phone.

Anyone done something similar ?

[northernladuk]

Anyone done something similar ?

Your accountant.

You've got to speak them re your other problem. Drop this one on them as well.

HTH

[Spoiler]

Your accountant.

You've got to speak them re your other problem. Drop this one on them as well.

HTH

Nope

[TheCyclingProgrammer]

If you want I do anything like part exchange it would be simplest to sell it to yourself for a reasonable market value and account for VAT on that sale. Once it’s yours you can do what you like with it including selling it on without having to worry about VAT.

[b0redom]

Just researching options on this one - before I "ask my accountant":

Maybe looking to dispose of a company asset before it's fully depreciated - a phone !

Assuming I could sell it, but would then need to include VAT in the sale.

Assuming it could be part-exchanged as part of the transaction of buying a new phone.

Anyone done something similar ?

Nope, I almost always donate mine to either my butler, chauffeur or groundskeeper.

[Spoiler]

If you want I do anything like part exchange it would be simplest to sell it to yourself for a reasonable market value and account for VAT on that sale. Once it’s yours you can do what you like with it including selling it on without having to worry about VAT.

Seems a straight-forward solution that, thanks !

[Spoiler]

Nope, I almost always donate mine to either my butler, chauffeur or groundskeeper.

Can you donate a company asset if it hasn't fully depreciated ?

[northernladuk]

Can you donate a company asset if it hasn't fully depreciated ?

Only if you trust your butler won't tell anyone.