Mobile Phone Through Limited Company

[expat]

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

Great! So you're giving the company a compulsory BIK, which you're paying for by having some of your personal calls kicked out of the free minutes.

[Nixon Williams]

Great! So you're giving the company a compulsory BIK, which you're paying for by having some of your personal calls kicked out of the free minutes.

Hey, don't shoot the messenger! Theses are the rules set out by the Revenue, my job is simply to explain them in a clear way.

Alan

[Mustang]

I currently have one account in my name. The parent phone is assigned to the company and the two children phones assigned to myself and my wife (co sec). I charge MyCo for the part of the bill associated with the relevant phone.

Sounds like this is not acceptable to HMRC.....?!

Tried transferring the account to Myco but, at the time, I didn't have my first set of accounts drawn up. Maybe I need to try again.

Hmm.....

[expat]

Hey, don't shoot the messenger! Theses are the rules set out by the Revenue, my job is simply to explain them in a clear way.

Alan

Sorry! I was only able to formulate that question because your examples were so strikingly clear.

May I do a follow-up question? Is it enough to get to my pfone company online account management site, login, and change "your name" from my name to the company name?

[PAG]

Alan, Also 1 more question.
Can you backdate the phone to company? provided that I have only 1 phone.

[dmini]

Check this link out
http://www.hmrc.gov.uk/manuals/eimanual/EIM21779.htm

Please note it says
the provision of one mobile 'phone to a director or employee for private use is exempt from charge

From the company - in the companies name - I agree - to an employee - but no restrictions apart from that! Some major companies are offering this as a benefit through salary sacrifice. There is no mention in the document - or any other on the website that I found, that the employee should require a phone for business calls, and only then can it be justified for private calls.

[Nixon Williams]

Sorry! I was only able to formulate that question because your examples were so strikingly clear.

May I do a follow-up question? Is it enough to get to my pfone company online account management site, login, and change "your name" from my name to the company name?

Check with your provider, if the contract, invoices and payments are all to your company that should be fine.

Alan

[Nixon Williams]

Alan, Also 1 more question.
Can you backdate the phone to company? provided that I have only 1 phone.

I cannot see how you can backdate the charges already invoice and charged?

Alan

[swamp]

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?

1. With Vodafone it was very easy to switch my account from personal to business. In fact they seemed well aware of this tax break on their product.

2. Vodafone business starts from £20 inc VAT with 75 mins -- normal vodafone also starts from £20 for 75 mins....

Transfering your mobile to your company really is a no-brainer. It should be on the Start Contracting FAQ or something.

[Nixon Williams]

Transfering your mobile to your company really is a no-brainer. It should be on the Start Contracting FAQ or something.

We do in our Starter Pack for new clients!