Mobile Phone (again)

[Cooperinliverp00l]

Before you all start yes i did search for previous threads but couldn't make out what search results i got....and i'm in a hurry before going to yet another Client meeting that is likely to end in blood shed.

anyway

Did we say it is ok to have a personal phone contract as long as it is address to your company address and the money comes straight out of your company bank. Went into Orange the weekend and the domestic contracts are a lot better than the Business ones and they seem to think that if it is addressed to me at my company address and money comes out of company bank that is ok for claiming it as business expense.

Thank you all in advance

[Flubster]

If it's a personal contract and not a business tariff, not sure how this could be seen as a business expense. Also, the contract is not in the name of the business so would be seen as your personal account.

[swamp]

No. Next.

Actually you might be able to chance it, but WTF would you want to? You may save a few quid a month on a personal contract, but one day in the future the Revenue will sting you for £1000's if they (not unreasonably) point out that YourCo Ltd. hasn't had its own proper mobile contract for the last six years...

[TheFaQQer]

In true CUK style, some did and some didn't.

More said no than yes.

As suggested, why risk it for a couple of quid? Get a proper business tariff and be done with it.

[Moscow Mule]

Read this lovely little ditty

http://www.hmrc.gov.uk/manuals/eimanual/EIM21779.htm

IANAA, but I think this.

Your company gets to give you a mobile phone for personal use, no tax implications etc.

If you can persuade Orange to give you a personal tariff on a business account (if the name of the account is YourCo Ltd - not You, YourCo Ltd) then thats your good negotiating skills, nothing to do with the revenue.

[Ruprect]

Get a business account, business tariff, then ring them up 3 months later and say you want XYZ tariff otherwise you'll go to a different mobile provider. They'll change it for you then...at least Vodafone did for me.

[Sausage Surprise]

Orange happily gave me my personal tariff as a business contract/account. I have been with them for 3 years now so maybe that had some sway.

[Peter Loew]

Of course it's okay.

Consider other business expenses; a laptop for example. There are no 'business laptops' and 'personal laptops' although some laptops are classed as 'business laptops'. Does that mean we are only allowed to buy those ones?

IMO, it doesn't matter to the HMRC so long as it is a legitimate business expense. The HMRC has no say how mobile operators classify their tariffs; that is up to them. So long as the damn thing is addressed to your company then it is a business expense - why would the way a mobile phone company classifies it tariffs have an affect on what you can buy from them as a business expense?

P

[TheFaQQer]

Of course it's okay.

IMO, it doesn't matter to the HMRC so long as it is a legitimate business expense. The HMRC has no say how mobile operators classify their tariffs; that is up to them. So long as the damn thing is addressed to your company then it is a business expense - why would the way a mobile phone company classifies it tariffs have an affect on what you can buy from them as a business expense?

P

The key thing is that the contract needs to be in the name of the company - if it is, then you can claim the line rental and all calls; if it isn't then you can only claim business related calls.

Having the bill addressed to the company is not the same as having the contract in the name of the company, it's a personal item that you are expensing, therefore subject to different rules than being a business asset used by an employee.

[Peter Loew]

The key thing is that the contract needs to be in the name of the company - if it is, then you can claim the line rental and all calls; if it isn't then you can only claim business related calls.

Having the bill addressed to the company is not the same as having the contract in the name of the company, it's a personal item that you are expensing, therefore subject to different rules than being a business asset used by an employee.

Yep that's what I implied. Contract must be addressed to the company; and if it is what difference does it make what category of tariff you're signed up to.