Buying a mobile handset as an asset

[heyindy]

Did you also ask them about changing the Direct Debit to your company account?

Yep. They have changed this for me too.

I suspect that if the investigation asked the question of whether this was a business or personal contract, the answer would be that it was a personal contract, so you can only claim the business calls as an expense.

It WAS set up as a personal contract, but the phone is only ever used for business use. The consumer contract is better, but I left it mainly because it is less hassle then having to complete the transfer of ownership route and setting up a new business account. I don't mind either way in all honesty, but they also suggested this method to me, but I just thought it felt almost too easy.

[TheFaQQer]

It WAS set up as a personal contract, but the phone is only ever used for business use. The consumer contract is better, but I left it mainly because it is less hassle then having to complete the transfer of ownership route and setting up a new business account. I don't mind either way in all honesty, but they also suggested this method to me, but I just thought it felt almost too easy.

Is the contract in your name still, or is it in the name of the company?

If the contract is in your name, then you should only claim the business-related calls you make. If the contract is in the name of your employer, then you can claim the whole bill.

Sounds to me like you should switch the direct debit back to you, and only claim the business-related calls.

[redgiant]

Yep. They have changed this for me too.



It WAS set up as a personal contract, but the phone is only ever used for business use. The consumer contract is better, but I left it mainly because it is less hassle then having to complete the transfer of ownership route and setting up a new business account. I don't mind either way in all honesty, but they also suggested this method to me, but I just thought it felt almost too easy.

This is how I handled it with O2. I wanted to use my existing personal number and also only have one handset. I don't know about anyone else but having more than one handset is a PITA. I had no less than three at once a couple of years ago (one personal, two business).

I filled out a transfer form, changes the name on the account to my limited co's name and changed the direct debit to come out from my business account.

As for if the deals are better for consumers rather than businesses my Simplicity deal works out to be about £5 more expensive on the business for the same minutes/texts and 500mb of data.

[heyindy]

Is the contract in your name still, or is it in the name of the company?

If the contract is in your name, then you should only claim the business-related calls you make. If the contract is in the name of your employer, then you can claim the whole bill.

Sounds to me like you should switch the direct debit back to you, and only claim the business-related calls.

So they basically got me to log in and update my address to say my MyCo Ltd before my home address which is my work place. So the name is the same, but as the director of the company isn't that ok?
So as I said before it appears like this now:

John Doe
MyCo LTD
123 A Street
A Town
AB1 2CD

My wife works has a company phone with her workplace and receives a bill in her name but with her company name immediately after.

If this all sounds too dodgy though I may aswell just go the extra mile and get it sorted properly, after all I've got nothing to hide, just want to claim what I am entitled to do.

[heyindy]

This is how I handled it with O2. I wanted to use my existing personal number and also only have one handset. I don't know about anyone else but having more than one handset is a PITA. I had no less than three at once a couple of years ago (one personal, two business).

I filled out a transfer form, changes the name on the account to my limited co's name and changed the direct debit to come out from my business account.

As for if the deals are better for consumers rather than businesses my Simplicity deal works out to be about £5 more expensive on the business for the same minutes/texts and 500mb of data.

Ahh ok, so you actually did get a business account and tarrif then? Yours sounds the safer way to do it. Such a hassle for only a relatively small saving! But we contractors must CLAIM EVERYTHING! lol

[redgiant]

Ahh ok, so you actually did get a business account and tarrif then? Yours sounds the safer way to do it. Such a hassle for only a relatively small saving! But we contractors must CLAIM EVERYTHING! lol

Unfortunately they won't register the consumer deals against a business but it is worth the hassle transferring to a business contract in the long term.

Aside from the form filling (Inc. changing the direct debit) it was very smooth. I just popped into my local O2 shop and they dealt with it - there wasn't even a period of no service that I was worried about. I like the simplicity deals as they only have 30day notice period so if a better deal comes along (or more likely you are sent abroad on a contract) you can move to it without having to wait until your current contract expires. The business deals also allow you to pay every quarter as well which is a plus.

[diesel]

You can get the DD taken from whatever account you want, but unless the contract is in the company name then you won't be able to claim the whole bill. You'll have to repay money into the company to cover the disallowed portion.

Thanks for the reply.
I thought as a director that i could change DD to my business account, even if bills are in my name as director it would be no problem.

[Clare@InTouch]

Thanks for the reply.
I thought as a director that i could change DD to my business account, even if bills are in my name as director it would be no problem.

It depends. If the 'phone is in your name and solely for business use you're fine.

If the 'phone is in your name and used as a mix of business/personal then there may be a BIK.

Have a read through here: HM Revenue & Customs: Telephones - mobile

[diesel]

It depends. If the 'phone is in your name and solely for business use you're fine.

If the 'phone is in your name and used as a mix of business/personal then there may be a BIK.

Have a read through here: HM Revenue & Customs: Telephones - mobile

phone is in my name and used for mix business/personal use. I asked some fellow LTD contractors where i work and they all claim their mobile bills submitted as an expense, but your HMRC link tells me there is more to consider.

[Greg@CapitalCity]

phone is in my name and used for mix business/personal use. I asked some fellow LTD contractors where i work and they all claim their mobile bills submitted as an expense, but your HMRC link tells me there is more to consider.

Yes, there is. As mentioned above, the phone needs to be in the company name, and paid for from the company bank account. I would bet there are many contractors who claim the full cost of a personal mobile phone - and the reasons this tends to happen are;
(a) The HMRC haven't caught them out (yet);
(b) Their accountant does not have a robust expense validation process so they just don't know about it;
(c) The contractor does not care about it, or just hasn't got around to getting it sorted properly - surely not this option