Buying a mobile handset as an asset

[Waldorf]

My accountant (nixon williams) told me when I set up to have the contract in the company name and set the DD up from the company account.

This is their factsheet on this - http://www.nixonwilliams.com/images/...e%20Phones.pdf

[heyindy]

Have spoken to o2 several times now and each time they have said many people have contacted them before about the same scenario, and they have always advised that rather than buying out the rest of your contract for whatever length of time remains, just to add the company name into the personal details and set the DD from the company account until the end of the contract and then switch over to a business contract. If anything happens to me I'm suing them!

[northernladuk]

If anything happens to me I'm suing them!

[Wanderer]

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.

How much is your phone bill then? You may end up paying £5 extra and that would outweigh the tax you avoid by putting the mobile through the business.

Personally, I wouldn't take out any "business" plan that costs more than a personal one - what's the difference? Why pay more?

[TheFaQQer]

Have spoken to o2 several times now and each time they have said many people have contacted them before about the same scenario, and they have always advised that rather than buying out the rest of your contract for whatever length of time remains, just to add the company name into the personal details and set the DD from the company account until the end of the contract and then switch over to a business contract. If anything happens to me I'm suing them!

If it was Vodafone, then they have a direct line to HMRC that could help you get out of paying your taxes....

[ASB]

If it was Vodafone, then they have a direct line to HMRC that could help you get out of paying your taxes....

pmsl

[7of9]

Slightly off the topic.

If I buy an iphone from apple directly, invoicing my limited company, shall I claim it as expenses or asset? My account mentioned that any computer item can be claim as expenses if it’s less than 500 pounds. Not sure if it applies to smart phone.

[redgiant]

Slightly off the topic.

If I buy an iphone from apple directly, invoicing my limited company, shall I claim it as expenses or asset? My account mentioned that any computer item can be claim as expenses if it’s less than 500 pounds. Not sure if it applies to smart phone.

I would claim it back on your expenses in the usual manner.

[Clare@InTouch]

Slightly off the topic.

If I buy an iphone from apple directly, invoicing my limited company, shall I claim it as expenses or asset? My account mentioned that any computer item can be claim as expenses if it’s less than 500 pounds. Not sure if it applies to smart phone.

I'd add it to expenses as normal, I wouldn't class it as an asset. For tax purposes there's no difference, it's either written off as an expense or capitalised and written off in the tax computation because of AIA. As technology moves so quickly these days it's also likely that you'll replace it within a couple of years, and that it'll be worth next to nothing by then too.

[7of9]

I'd add it to expenses as normal, I wouldn't class it as an asset. For tax purposes there's no difference, it's either written off as an expense or capitalised and written off in the tax computation because of AIA. As technology moves so quickly these days it's also likely that you'll replace it within a couple of years, and that it'll be worth next to nothing by then too.

Thanks for the answer, Clare. Does the 500 pounds rule still apply?