Mobile Phone for Personal Use but Claimed as Expense...

[MarillionFan]

I put the bill through every month and have done for ten years and it's in my name not the companies. I need to be contacted.

If Hector wants to pull me for it, good luck we can argue it later.

[TheCyclingProgrammer]

It has happened, so the only way forward is to pay back the money you now owe your company.

Not true at all. There is nothing essentially wrong with what the OP has claimed; you can claim whatever you like from YourCo as an expense, it's whether or not it is considered a BIK that determines whether or not it is liable to tax and/or NIC.

In this case, only business calls would have been been a valid business expense but he doesn't have to pay his company back, he can simply declare the value of the personal calls and line rental on his P11d and declare them on his personal tax return as a taxable benefit and pay tax/NI accordingly.

[TheCyclingProgrammer]

Every contractor should have a company phone. You will get a rubbish call plan, but the tax savings will more than make up for it. Also you will get better customer service. No Bangalore call centres for us Limited Companies

I'm not that convinced.

I purchased my last phone, an iPhone 4, as a capital asset through my company. HMRC considers an iPhone to be a computer rather than a phone anyway, but it was worth doing as I was buying it outright and there was a reasonable tax saving.

But my contract is with O2 on their iPhone simplicity plan (in my name) which is great value and I really don't think it's worth transferring to a business account. I don't bother claiming business call costs either, it's simply not worth it as most of them are part of my free minutes anyway.

[MarillionFan]

I'm not that convinced.

I purchased my last phone, an iPhone 4, as a capital asset through my company. HMRC considers an iPhone to be a computer rather than a phone anyway, but it was worth doing as I was buying it outright and there was a reasonable tax saving.

But my contract is with O2 on their iPhone simplicity plan (in my name) which is great value and I really don't think it's worth transferring to a business account. I don't bother claiming business call costs either, it's simply not worth it as
most of them are part of my free minutes anyway.

WHS

This misplaced concept that every bill,receipt,invoice,correspondence,interaction must perfectly match the rules out lain by Hector is nonsense.

If you are honestly in business and can show that costs were incurred that's fine. The anal / pedantic view of some posters on this forum that a single incorrect receipt will bring the sword of Damocles down upon their heads is nonsense .

Put your phone bill and rental through, if one day Hector gives you an audit(which is highly unlikely) then debate it then.

[Wanderer]

Have seen business contracts and agree they're rubbish compared to personal ones; so you had no problem at all transferring a personal contract into a company name??? If so then I'll probably try going down that route aswell.

Really? I just signed up with T-Mobile on a business tariff and it's exactly the same as the personal one...

100 Min, 100 Txt, 1 Gig data, 30 day contract: £8.51 + VAT

I don't see why a business should pay extra, it's just a phone. If your mobile operator can't sort something out then I suggest you try a different one.

[SueEllen]

But my contract is with O2 on their iPhone simplicity plan (in my name) which is great value and I really don't think it's worth transferring to a business account. I don't bother claiming business call costs either, it's simply not worth it as most of them are part of my free minutes anyway.

Have you asked O2 if you can transfer it to your business name?

O2, Vodafone and T-mobile tend to be the happiest in doing that.

3 have cr*p customer service so I won't ask them anything, and I've never been on an Orange/Virgin Mobile/Tesco pay monthly plan.

[TheCyclingProgrammer]

Have you asked O2 if you can transfer it to your business name?.

No, but I doubt they'd oblige as it is clearly a personal plan. But even then, I can live without the £50 a year tax saving.

[manclarky]

I assume you're not charging your dog food bills to the company as well?

"Food for guard dog"....?