Mobile Phone Through Limited Company

[Maxamus]

Are you really a contractor??

Maximising income from plan A means claiming every bastard thing.

i am a contractor yes but i hate busting my balls to please the friggin taxman.

yes the majority of my calls from my phone are for business use as i use my own phone when im at the clients site and for when i am out working on site (im a highways engineer so spend alot of time walking up and down roads and motorways)

But i dont get an itemised bill and if i wanted an itemised bill that would cost me anotehr £2....just cant be bothered sorting it out.

[Back In Business]

Yeah I know, was just taking the piss.

I get a better business deal through Orange than privately, not really that bothered about the tax.

[Maxamus]

im still going to bang 1/2 of that £35 through as an expense. The tax man can go shag his mother!

[Nixon Williams]

Nearly

So if I got a phone for the company secretary (my missus) and 99% of the calls/texts from it are to me (split between personal and business), what part will I need to pay tax on then (my phone is already paid for by MyCo)?

You can have one phone through the company provided you comply with the rules of my earlier post.

IF the secretary is an employee who has a real role in the company, and so needs a mobile phone the they could also be provided with one. Personally I doubt if any Secretary could justify the need for a company phone to the Revenue.

If it is a personal phone then you can only claim for the business calls and the company should only be paying for the phone if the contract is in the company name.

Alan

[VinnyB]

You can have one phone through the company provided you comply with the rules of my earlier post.

IF the secretary is an employee who has a real role in the company, and so needs a mobile phone the they could also be provided with one. Personally I doubt if any Secretary could justify the need for a company phone to the Revenue.

If it is a personal phone then you can only claim for the business calls and the company should only be paying for the phone if the contract is in the company name.

Alan

So Alan, say I have a Personal contract of £35/month with inclusive call minutes, but the minutes used on business calls 'equates' to, say £50, do i claim £50 or £35? Conversely, what if the minutes used on business calls 'equates' to £25?

[Nixon Williams]

So Alan, say I have a Personal contract of £35/month with inclusive call minutes, but the minutes used on business calls 'equates' to, say £50, do i claim £50 or £35? Conversely, what if the minutes used on business calls 'equates' to £25?

I hope this explains:

Example
The package is £30 per month including 60 free minutes.

•The bill for March is £30, with 50 minutes used in total (30 private, 20 business). No claim can be made because no extra expense has been incurred in making the business calls.

•The bill for April is £40, with 100 minutes used in total (40 private, 60 business). The claim will be £6.00, which is 60% of the extra call charges, because 60% of the total call time was made up of business calls.

Alan

[expat]

Start here: http://www.hmrc.gov.uk/budget2006/bn30.htm

If the phone contract is in the company name there is generally no BIK on private use.

If the phone is your own you can only charge the company for calls.

If the phone is PAYG bought by the company explore the link in more detail.

Anybody happen to know:
1. are the phone companies normally prepared to change the account to the Co name?
2. what is the cheapest SIM-only business account, if the main usage is making and receiving calls to/from the UK while the phone is in Europe?

[spoons]

I rang Orange and got them to move my number over to a business account, all they required was the company registration number and VAT number.

Easy, in as much as dealing with these people is

[expat]

I hope this explains:

Example
The package is £30 per month including 60 free minutes.

•The bill for March is £30, with 50 minutes used in total (30 private, 20 business). No claim can be made because no extra expense has been incurred in making the business calls.

•The bill for April is £40, with 100 minutes used in total (40 private, 60 business). The claim will be £6.00, which is 60% of the extra call charges, because 60% of the total call time was made up of business calls.

Alan

I suggest for the 2nd example:
•The bill for April is £40, with 100 minutes used in total (40 private, 60 business). All 40 minutes of personal calls are paid for by the package. The extra £10 charge is entirely due to business calls, and should all be claimable.

Your example is tantamount to 60% of the free minutes going to business calls. If you pay 100% of the package costs personally, why are you obliged to give up some of your free minutes to the Ltd Co? You have paid for all the free minutes out of your own pocket.

[Nixon Williams]

I suggest for the 2nd example:
•The bill for April is £40, with 100 minutes used in total (40 private, 60 business). All 40 minutes of personal calls are paid for by the package. The extra £10 charge is entirely due to business calls, and should all be claimable.

Your example is tantamount to 60% of the free minutes going to business calls. If you pay 100% of the package costs personally, why are you obliged to give up some of your free minutes to the Ltd Co? You have paid for all the free minutes out of your own pocket.

Sadly this would not be acceptable to the Revenue! This of course can be avoided if the phone is set up in the company name in the first place.

Alan