Reclaiming Mobile Phone cost

[Frog Morton]

Newcomer here looking to set up as Ltd Co in a few months time. I need to buy a new PAYG mobile phone now and wondering whether I can reclaim the cost of the phone as a business expense (as I will predominantly use for business), when I setup Co in 2/3 months time.

[Platypus]

Newcomer here looking to set up as Ltd Co in a few months time. I need to buy a new PAYG mobile phone now and wondering whether I can reclaim the cost of the phone as a business expense (as I will predominantly use for business), when I setup Co in 2/3 months time.

Yes you can.

[wildkat]

Is this also true for a handset only (I will spend about £300 on the latest handset thats completely sim free)?

[Sausage Surprise]

Get a contract in your company name rather than your own and pay the bill from your company bank account.

[dmini]

If its PAYG you cannot get it as a contract in yourco name - so unless you do all payments directly from your it MAY not be allowable. Or better put, you can claim it back, but it probably becomes a BIK. Better to get a contract phone in yourco name - that is definitely fully allowable.

[Hex]

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

They say: In most circumstances the provision of one mobile 'phone to a director or employee for private use is exempt from charge. The exemption covers the phone itself, any line rental and the cost of private calls paid for by the employer on that phone.

I would infer that the company can buy a PAYG phone for you without a BIK.

[ASB]

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

They say: In most circumstances the provision of one mobile 'phone to a director or employee for private use is exempt from charge. The exemption covers the phone itself, any line rental and the cost of private calls paid for by the employer on that phone.

I would infer that the company can buy a PAYG phone for you without a BIK.

I think you may infer wrong. Can't find it on HMRC at the moment but the situation for pay/go is different *but I can't remember in exactly what way.

[Archangel]

I think you may infer wrong. Can't find it on HMRC at the moment but the situation for pay/go is different *but I can't remember in exactly what way.

I think it says that your company cannot reimburse the cost of a mobile, only the calls. So if the company provides one (i.e. the company pays) then ok, but if you pay for it yourself you can't claim it as an expense.