Phone contract + Apple watch

[Rik1087]

Hi All,

Apologies, this probably has been asked before, but my search hasn’t found anything recent, which I think is quite relevant and I will touch on shortly.

my question is, my current personal phone contract is ending, and I will be processing a new one in the name of my limited. All fairly standard stuff, and an allowable business expense due to me using the phone daily for calls / messages / emails.

I have been offered as part of my business deal a discount on an Apple Watch to be added to the business package. Is this an allowable business expense?

Has anyone done this, or currently doing it?

I can see how there may be a personal element to it when it comes to the expense argument as there is when thinking about a timepiece. But I found an interesting article explain the argument as to why it could be considered an integral part of business owners life just as a phone would be;


1. Firstly it has features identical to an iPhone or iPad which are allowable.
2. It can boost your business productivity and work more productively.
3. It has a built-in speaker and microphone that gives you a hands-free ability to take that conference call while on the move.
4. Calendar alerts for business appointments, business-related texts, business calls, and work email.
5. A social media for your business, and Apple Pay for quick business purchases.

That to me sounds a fairly solid case for it being an allowable business expense?

Am I worrying about nothing & a large percentage already do this, or is it one of those grey areas that everyone has a different opinion on & it’s best to stay away from?

final caveat, I am not precious about an Apple Watch, I already have one, and was going to upgrade in due course but the discount given has made me consider it sooner.

thanks in advance.

[northernladuk]

Have you asked your accountant? Remember you are just asking a bunch of contractors on here.

But.. looking at your wording you've lifted the reasons for having one straight off this site or one where the same article has been published.

https://www.kcpaaccountants.uk/can-i...h-my-business/

It does state at the bottom that it would be helpful to speak to a professional.

Just for your interest this article covers why Phones and Tablets are allowed as they are specifically covered but a watch falls in a grey area.
https://www.linkedin.com/pulse/apple...iness-advisor/

About time they addressed it to be fair.

This article discusses two ways of doing it, partical and full claim
https://www.kingsfordoffice.com/blog...tible-expense/
I assume you are going for a fairly basic model and at a discount so kinda covered by both those so entirely reasonable to assume you could put a base level discounted watch through. Because HMRC haven't addressed smart watches directly I'd also assume going for a fancier one won't look great and you would go for a partial claim.

I'd personally take articles like this to my accountant and get them to look in to it. I'd be expecting a yes from them though as the KCP article indicates it's OK as well.

[Lance]

if you don't know whether an Apple Watch is something you need for your business, then you probably don't need ti for your business. On that basis it's not a genuine business expense.

However.... How do you know till your business has one?
I do a lot of MDM testing for customers so it was very easy for me to get a Watch. It turned out really quickly that there is very little MDM management of the watch and so my testing concluded quickly.
But the watch does allow me to authorise MFA for multiple clients very easily. On that basis it is a valuable company asset.

I don't buy any of the reasons you have listed. A phone accomplishes all of those already.

But in reality, it's your business, and only you can make the correct decision. and HMRC aren't going to fight a case over a watch.

[eek]

if you don't know whether an Apple Watch is something you need for your business, then you probably don't need ti for your business. On that basis it's not a genuine business expense.

However.... How do you know till your business has one?
I do a lot of MDM testing for customers so it was very easy for me to get a Watch. It turned out really quickly that there is very little MDM management of the watch and so my testing concluded quickly.
But the watch does allow me to authorise MFA for multiple clients very easily. On that basis it is a valuable company asset.

I don't buy any of the reasons you have listed. A phone accomplishes all of those already.

But in reality, it's your business, and only you can make the correct decision. and HMRC aren't going to fight a case over a watch.

HMRC May query the Watch but between HMRC and the director one side will back down before the £100,000 tribunal kicks off (probably the director when he sees the bill).

end question for everything is very simple - Can I justify it. Now I would be hard to if my main computer was a pic but if it’s a Mac an Apple Watch acts as a physical identification device for security so that could be a valid reason

[Lance]

HMRC May query the Watch but between HMRC and the director one side will back down before the £100,000 tribunal kicks off (probably the director when he sees the bill).

Quite

end question for everything is very simple - Can I justify it. Now I would be hard to if my main computer was a pic but if it’s a Mac an Apple Watch acts as a physical identification device for security so that could be a valid reason

Navigation device for the company bike.
Development/integration of wearable technology.
You could even stretch as far as a safety device for lone workers.

Hard to argue against any of those, but the OP needs to know why the business needs it, rather than just a list of 'excuses' for the tax man if they come asking. If you can be honest with yourself about the usage, with a genuine business reason then all is fine IMO.

[ladymuck]

I'm interested in the package terms.

Is it:
Take out a two year contract with an iPhone and for an extra £10 a month you get a watch, or

Take out a two year contract with an iPhone and at no extra cost you get a watch thrown in for free?

If the latter then I see no issue at all. If it's the former then it's a grey area at best if you don't have a clear idea if it's wholly and exclusively for the operation of the business. I'm not convinced the watch passes that test based on your logic.

[Lance]

I'm interested in the package terms.

Is it:
Take out a two year contract with an iPhone and for an extra £10 a month you get a watch, or

Take out a two year contract with an iPhone and at no extra cost you get a watch thrown in for free?

If the latter then I see no issue at all. If it's the former then it's a grey area at best if you don't have a clear idea if it's wholly and exclusively for the operation of the business. I'm not convinced the watch passes that test based on your logic.

for me. I bought the device outright as I needed it to be unbundled so I could test with multiple instances of MDM, and potentially multiple carriers.
But I had a genuine reason.

[ladymuck]

for me. I bought the device outright as I needed it to be unbundled so I could test with multiple instances of MDM, and potentially multiple carriers.
But I had a genuine reason.

I have no doubt your needs were right and proper. I was talking about the OP