Mobile phone query

[RyanDS]

Hi chaps.

Got an annoying situation with my mobile phone. Just started up my company and started trading. I have a sim only contract under my name, and bought a new phone out of my personal cash as I was yet to receive any funds into the company bank account.


Now I have some cash I claimed the phone back as an expense and went to transfer the contract into the name of the company to meet the criteria for being able to claim back the costs.

Just heard back from Vodafone that my new company failed the credit check so I can't transfer the contract, so it must stay under my name.

My question is can I still claim the phone and the monthly bill as expenses (or a cost to the company in another way?) or am I screwed as the rules state the contract has to be under the company name to be eligible for this. Can an argument be made that in good faith the attempt was made and the phone is clearly the business phone and will be transferred across when the company has traded longer and Vodafone allow?

I know the answer is "ask your accountant" but I was hoping someone here would have experienced a similar situation, which is more likely than my generic accountant knowing.

[craigy1874]

Hi chaps.

Got an annoying situation with my mobile phone. Just started up my company and started trading. I have a sim only contract under my name, and bought a new phone out of my personal cash as I was yet to receive any funds into the company bank account.


Now I have some cash I claimed the phone back as an expense and went to transfer the contract into the name of the company to meet the criteria for being able to claim back the costs.

Just heard back from Vodafone that my new company failed the credit check so I can't transfer the contract, so it must stay under my name.

My question is can I still claim the phone and the monthly bill as expenses (or a cost to the company in another way?) or am I screwed as the rules state the contract has to be under the company name to be eligible for this. Can an argument be made that in good faith the attempt was made and the phone is clearly the business phone and will be transferred across when the company has traded longer and Vodafone allow?

I know the answer is "ask your accountant" but I was hoping someone here would have experienced a similar situation, which is more likely than my generic accountant knowing.

You can claim the cost of the handset, but you can't claim the monthly charge as this is not in the company name.

[northernladuk]

You can claim the cost of the handset, but you can't claim the monthly charge as this is not in the company name.

I didn't think that was the advice that appeared to come out of the thread on exactly this only a day or two ago.

https://forums.contractoruk.com/acco...-purchase.html

[northernladuk]

I'd be interested to see what the OPs accountant does have to say on the matter.

[craigy1874]

I didn't think that was the advice that appeared to come out of the thread on exactly this only a day or two ago.

https://forums.contractoruk.com/acco...-purchase.html

Just looked at think it is? Handset allowable, personal contract charges not?

[northernladuk]

Just looked at think it is? Handset allowable, personal contract charges not?

It's not really clear. The one post that stands out is the difficulty around supplying the handset without a business contract. Post 27. Reading back everyone says you can but doesn't mention if they've got a business plan or not. That's why I'd be interested to see what their accountant says.

I read in to it you can provide a phone, contract and all, not just a handset. There is no clear differential between a handset and a phone but you can see why they could be very different in HMRC's eyes.

[TheCyclingProgrammer]

Not only could you ask your accountant, but you could do a search and look in one of the numerous threads on here on this subject! There's been at least a couple in the last few weeks.

You could possibly get away with expensing the handset, or even selling the asset to YourCo (you won't be able to reclaim any VAT though).

Contract does need to be in the company name, there's no way around that if you want to go by the book. Stick with the personal SIM, you can still reclaim the costs of any business calls if you need to, then try and transfer to a business contract in a year or two when you might have a sufficient credit rating.

[TheCyclingProgrammer]

I read in to it you can provide a phone, contract and all, not just a handset. There is no clear differential between a handset and a phone but you can see why they could be very different in HMRC's eyes.

HMRC technical guidance says that YourCo can provide a single phone for personal and business use. The exemption covers the handset itself, any line rental and any private call costs.

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

It doesn't say anywhere that you need to have a business contract in order for the cost of the handset to be allowable, although IMO you any hardware/asset for the business should be purchased in the company name to prove it belongs to the company. You'd also obviously need an invoice in the company name to support a VAT reclaim too.

But there's no reason why OP cannot sell the phone to the company.

[TechRiskPartners]

Mobile Phone - Sim-Only

Hi

I am starting so objective is to keep the cost down as much as I can.

Looking for a mobile deal - Sim-only, Partner got a 8 months old iPhone 6s from preivous employe @£84 which she was using, very diligent user.

So SIM only should cover Client calls, usual data and Roaming (as my gigs are looking in NL, Germany and UAE to start with). Good data pack as may need to use hotspot while at Clients temporarily (hassle going through their network may be time consuming most times). So any recommendations would be helpful.

Thanks

[RyanDS]

I picked up a sim only from EE 3 weeks ago. 40 gig data, free BT sport and EU roaming for £14+vat a month which I can't complain about.