Limited Company and business phone

[Wanderer]

There is an interesting piece on HMRC's website, have a read of it EIM21613 Meaning of not significant use for private purposes

where a computer is provided by an employer because it is necessary for an employee to be able to carry out the duties of the employment either at home, or whilst travelling or at work, it is highly unlikely that any private use made of that equipment will be significant when compared with the business need for providing the computer in the first place. In these circumstances section 316 will apply and no tax charge will arise.

In HMRC's mind, a smartphone is effectively a "computer", therefore I think it fits that example.

See the examples given by HMRC, they are quite clear. If you need a smartphone because it's essential to allow you to perform a particular task (eg, reading your work emails on the train, I'm sure there are a hundred other reasons) then it is automatically "not significant private use" regardless of how much non-business use there is.

[Madocks]

I took out a phone contract with o2, granted it was a personal contract, however I insisted that the name was billed to me as MD and the business address, it also gets paid for out of my business bank acc.

However 60%+ of my calls are generally work related.

[TheFaQQer]

I took out a phone contract with o2, granted it was a personal contract, however I insisted that the name was billed to me as MD and the business address, it also gets paid for out of my business bank acc.

However 60%+ of my calls are generally work related.

If the contract is a personal contract, then you cannot claim personal calls or line rental as a business expense - the contract needs to be in the name of the company and on a business tariff to do that. Which means that it must be a real PITA for you to reimburse the company the line renal and personal calls each month since it's coming out of your company account.

[northernladuk]

If the contract is a personal contract, then you cannot claim personal calls or line rental as a business expense - the contract needs to be in the name of the company and on a business tariff to do that. Which means that it must be a real PITA for you to reimburse the company the line renal and personal calls each month since it's coming out of your company account.

I have never seen the business tariff mentioned before. I can't see why that is needed. As long as LTD is names and paying what does the tariff matter? Oddly enough I get a better tariff on my personal one due to being a long term customer than I could on a business one so was saving my ltd money.