Mobile phone and IR35

[NotAllThere]

If caught by IR35, does the mobile phone expense come out of the 5% of whatevers left after allowable expenses are deducted. Or is it an allowable expense?

[FiveTimes]

I do not understand that at all - a PAYG sim is a PAYG sim, what is special to a business about it? I didn't see anything on the orange web site.

http://shop.orange.co.uk/shop/business/plans/paymsim

[MPwannadecentincome]

http://shop.orange.co.uk/shop/business/plans/paymsim

That, my good sir, is not a PAYG it is a pay monthly.

[malvolio]

If caught by IR35, does the mobile phone expense come out of the 5% of whatevers left after allowable expenses are deducted. Or is it an allowable expense?

The 5% is not an expenses allowance. Do your homework.

Gross income less allowable expenses (which includes a mobile) gives the effective total income. PAYE and NICs are due on 95% of that balance.

[PhilAtBFCA]

Mobile Phones and IR35

I do not understand that at all - a PAYG sim is a PAYG sim, what is special to a business about it? I didn't see anything on the orange web site.

Besides, I was not asking where to get a SIM, I was asking if the rules for mobile phones being allowed as a business expense include PAYG phone or is it only monthly contract plans in the name of the business that count?

Thanks for the question, I did some research and updated our knowledgebase article about Mobile Phones accordingly. ( PAYG had not been written about before )

BTW, the simple answer is NO to PAYG whether you are a Limited Company or Umbrella Employee.

Phil

[NotAllThere]

The 5% is not an expenses allowance. Do your homework.

Gross income less allowable expenses (which includes a mobile) gives the effective total income. PAYE and NICs are due on 95% of that balance.

I was clarifying the op's question. I couldn't care less about IR35 or stupid UK expenses rules.

[dx4100]

Cheers for the feedback...

My accountant confirmed it is an allowable expense and IR35 has no effect on that.

[Lumiere]

I did some research recently and realised that going for a business tariff when you are a 1-2 man company does not make sense at all, e.g. atm I am paying £20 for O2 Simplicity and get 600 minutes + free internet. The nearest business tariff is circa £30 and no internet included.

£20 << (£30 + £7.50) - 21% (?)

Correct me if I am wrong ..