Mobile Handset Purchase

[ladymuck]

I never go with 'offers' direct from the provider's website.
You can get the same deals for half the price on comparison websites (personal contracts).

Good for you

The clue in my post was "a quick squizz".

[TheCyclingProgrammer]

But what's wrong with putting it in the original category and dealing with it as an asset?

Nothing. It's a matter of preference/accounting policy.

[TheCyclingProgrammer]

So my accountant has stated the following

Without a contract in the company name, it will be hard to justify the cost of the handset. The handset should only be expensed through the limited company if it is used for business purposes only.

FFS, get a new accountant who understands HMRC expense rules. It's not complicated:

https://www.gov.uk/hmrc-internal-man...anual/eim21779

Section 319 ITEPA 2003 (as amended by Finance Act 2006)
In most circumstances the provision of one mobile ‘phone to a director or employee for private use is exempt from charge. The exemption covers the phone itself, any line rental and the cost of private calls paid for by the employer on that phone.

Therefore YourCo can provide a handset for you to use for both business and personal use. Yes, the contract must be in the company name in order for YourCo to pay for it without it being a BIK, but that's separate to the provision of the actual handset. Buy the handset and get an invoice in the company name. If you want YourCo to pay for the contract too, get that in the business name, or simply buy the handset through the business and pay for your own personal SIM to use in it.

[simes]

Quite.

If he can't get phone expenses right, what else is he missing?

[Bomster1]

I must say it is concerning to me that my accountant is making this mistake/misjudgment.

Like you say, if they can't get this right then what else will they get wrong.

I'm with Gorilla who I researched on this site, and they came as advised by many

[BackupBoy]

I must say it is concerning to me that my accountant is making this mistake/misjudgment.

Like you say, if they can't get this right then what else will they get wrong.

I'm with Gorilla who I researched on this site, and they came as advised by many

I’m with Gorilla too and I’ve not had any issues with my accountant there regarding mobile phone purchase and management. (Or on any other matter either)

I’ve just looked in FreeAgent and the purchase of my iPhone 7 in September 2016 is listed as a company asset under Computer Equipment. I have an EE sim-only business contract that’s paid directly from the company account and categorised as Mobile Phone.

[Bomster1]

I’m with Gorilla too and I’ve not had any issues with my accountant there regarding mobile phone purchase and management. (Or on any other matter either)

I’ve just looked in FreeAgent and the purchase of my iPhone 7 in September 2016 is listed as a company asset under Computer Equipment. I have an EE sim-only business contract that’s paid directly from the company account and categorised as Mobile Phone.

Thanks for that info BackupBoy - really useful, as I am basically going to do the exact same thing. I spoke to EE earlier, and you can simple 'swap' to a business account without any hassle, I will then start paying the contract using my business account. My accountant confirmed she's happy with that whole situation, so it's actually a win-win situation as I am putting more through my business then I initially planned.

Out of interest, what asset life did you put on your iPhone? I would assume just 2 years? Is this fairly inconsequential?

[BackupBoy]

You’re welcome. Two years. So this year - woohoo! ;-)