Mobile - Personal or Business

[konsultant]

Hi,

I am not on the flat rate scheme and was looking to get a new mobile contract.

Is there any benefit in getting it on my company name so I can claim the monthly tariff as business expense?

Understand that it is meant to be for business calls, but if the tariff is unlimited minutes then ? In this case all calls are included. Can I get something like this?

I see the rate ex vat are cheaper. Does this mean that I pay VAT which will be offset against the VAT I pay?

Thanks

[FarmerPalmer]

If, for example you go for say O2, as an example the cost is about the same, and you can reclaim the VAT on business, and pay as a business expense.
However GiffGaff is considerably cheaper, for the same network, but personal account only.
However TUGo is only available on O2 (calls & texts over WiFi).
I have a client who has no reception other than O2, and only because they have an O2 cell inside the building.
I have a client where there is no reception on any network but there is a guest WiFi that I can use TUGo on.
So I have a O2 business contract.

[TheCyclingProgrammer]

Is there any benefit in getting it on my company name so I can claim the monthly tariff as business expense?

If the contract is in the company name, the entire cost is an allowable expense for corporation tax. Weigh this up (and the potential personal tax savings of not paying it out of post tax personal income) against the range of business plans and their costs vs a personal plan.

If you're on the standard VAT scheme, you can also reclaim the VAT too - another potential saving.

Despite all of this, it might still work out cheaper to go on a personal plan and pay for it personally (you can still reclaim the cost of business calls outside your allowance). YourCo can still purchase the handset for you to use the personal SIM in. It depends on your usage requirements really.

Understand that it is meant to be for business calls

It doesn't have to be just for business calls. A company can provide its employees/directors with a single handset (including the contract/SIM) for mixed personal and business use. Additional phones can be provided but these must be wholly and exclusively for business purposes.

IIRC the usual rules about restricting VAT reclaims for any personal use element do not apply when providing a mobile phone - you can reclaim all of the input VAT regardless of how much personal use there is.

[konsultant]

Thank you all for your replies.

Let me clarify a bit more what I was asking -

The plans I am looking to get have unlimited minutes. I will be using the phone for 75% personal and 25% business, this may change in future.

However since the minutes are unlimited, i can put money back for say personal calls. Even if I had a personal plan I cant claim only business calls due to the nature of the plan. Is that all OK?

Since I am on standard vat, my understanding is I can offset the VAT of business plan against my VAT in addition to savings on corporation tax?

Finally, does anyone know if Samsung S8 can be rooted ?

Regards

[SueEllen]

Thank you all for your replies.

Let me clarify a bit more what I was asking -

The plans I am looking to get have unlimited minutes. I will be using the phone for 75% personal and 25% business, this may change in future.

However since the minutes are unlimited, i can put money back for say personal calls. Even if I had a personal plan I cant claim only business calls due to the nature of the plan. Is that all OK?

Since I am on standard vat, my understanding is I can offset the VAT of business plan against my VAT in addition to savings on corporation tax?

Finally, does anyone know if Samsung S8 can be rooted ?

Regards

There is no need to.

The thing with mobile phones is they are now personal computers. So while you may do 75% personal calls now a lot of your emails and web browsing may be work related due to for example the fact that your client restricts internet access on site. Some clients for example aren't happy with you browsing the BBC website and The Register let alone this site, so you won't know what technology matters have hit the news let alone know where to look for business advice.

The thing is as a contractor or freelancer or small business owner you have limited control on what percentage of your calls you make or receive will be business or personal week to week.

[TheCyclingProgrammer]

As mentioned above, twice, there is no need to pay anything back for personal calls if YourCo has a business plan. You can have one phone and contract for mixed use without incurring a BIK.

[DSF70]

I moved my Vodafone sim-only across to my Business when I set up last year. Was on a £35pm red deal, u/l calls and texts and 20gb data...with a 40% discount. So £21pm.

The deal was honoured as I moved across to their Business service, and I've just hit renewal. The Business team called me and I've now got the same deal for £20pm + VAT, with 50% discount....so £10pm. Couldn't believe my ears!

Gonna move my wife (Director) across too, same deal.

[konsultant]

Thanks Everyone

[konsultant]

I moved my Vodafone sim-only across to my Business when I set up last year. Was on a £35pm red deal, u/l calls and texts and 20gb data...with a 40% discount. So £21pm.

The deal was honoured as I moved across to their Business service, and I've just hit renewal. The Business team called me and I've now got the same deal for £20pm + VAT, with 50% discount....so £10pm. Couldn't believe my ears!

Gonna move my wife (Director) across too, same deal.

Thats a great deal at £10pm and I think it includes NOW or Sky TV as well.

[DSF70]

Thats a great deal at £10pm and I think it includes NOW or Sky TV as well.

Or Spotify too.

It's only a 12 month deal too. I bought my iPhone from Apple, so I wasn't tied....used my Ipse discount