HMRC now accept 'smartphones' qualify as 'mobile phones'

[mudskipper]

When they sent the advice last year it wasn't incorrect surely? It was correct at the time of sending but changed in Feb.

This was sent to me this week - so definitely incorrect. Have emailed Daniel forwarding the document and have requested to be sent the newsletter, although am surprised this didn't happen automatically.

[Sockpuppet]

I think its a no then, as they are incapable of "transmitting or receiving spoken messages"

It's allowed. I use one and accountant has no problem with it. It's quite obvious that its a business expense as I need it to connect to e-mails when at clients sites as I don't use their equipment or networks.

I also used to use a data card which again was allowed. OK I've never been investigated but it would be a hard sell that its not allowed.

[mudskipper]

Just to say, SJD have responded and now sent updated P11D guidance to me (and presumably anyone else who got the wrong letter).

[d000hg]

Sorry to drag up the old thread but it seemed silly starting a new one...

So basically provided that ... the contract is in the company name and that the monthly payments are made from the company bank account

I already have a contract in my own name. Cancelling and setting up a new account in the business' name seems a bit of a faff especially since I fear business tariffs are not as competitive (and assume I can't change my personal tariff to be in the business name). Any general thoughts on how to proceed are welcome but two specific questions:

1)If you buy a handset alone, or PAYG phone, what are the rules?
2)If the contract is NOT in the business' name, can you claim anything at all? If so, what?

[Nixon Williams]

Sorry to drag up the old thread but it seemed silly starting a new one...



I already have a contract in my own name. Cancelling and setting up a new account in the business' name seems a bit of a faff especially since I fear business tariffs are not as competitive (and assume I can't change my personal tariff to be in the business name). Any general thoughts on how to proceed are welcome but two specific questions:

1)If you buy a handset alone, or PAYG phone, what are the rules?
2)If the contract is NOT in the business' name, can you claim anything at all? If so, what?

I realise that the HMRC rules are bit awkward but if you want to have a successful claim then they are the rules you should follow.

If you have no company phone and want to claim just for calls then you could submit a claim just for the calls, obviously without itemised billing this is not easy to do but if you do wish to pursue this then a best guesstimate should be acceptable, just keep your workings on what assumptions you have made in order to calculate the claim.

Alan

[ClearSky Accounting Dan]

1)If you buy a handset alone, or PAYG phone, what are the rules?
2)If the contract is NOT in the business' name, can you claim anything at all? If so, what?

1) Buying a handset alone would be allowable for corporation tax relief through capital allowances, however if you are putting a personal SIM card into it then there would be personal use of an asset and therefore a benefit in kind tax charge on 20% of the asset value. PAYG top ups - the same as below, you may only claim the cost of the calls you can identify as for business use.

2) If the contract is not in the business name then you cannot claim relief for the line rental element, and the only claim you can make is for the cost of calls that you can attribute to business use. i.e. going through the bill each month and highlighting the business calls.

The best way is to get a phone contract in the business name however like you say it's a bit of a faff doing mid-contract. Definitely worth considering when you come to the end of your phone contract though, and in my experience there doesn't seem to be an awful lot of difference in the cost of a business contract as opposed to a personal one (certainly when factoring in the tax relief available).

[d000hg]

Maybe I'll talk to my provider and see if they'll make it easy for me in that case.

Thanks!

[BolshieBastard]

1) Buying a handset alone would be allowable for corporation tax relief through capital allowances, however if you are putting a personal SIM card into it then there would be personal use of an asset and therefore a benefit in kind tax charge on 20% of the asset value. PAYG top ups - the same as below, you may only claim the cost of the calls you can identify as for business use.

2) If the contract is not in the business name then you cannot claim relief for the line rental element, and the only claim you can make is for the cost of calls that you can attribute to business use. i.e. going through the bill each month and highlighting the business calls.

The best way is to get a phone contract in the business name however like you say it's a bit of a faff doing mid-contract. Definitely worth considering when you come to the end of your phone contract though, and in my experience there doesn't seem to be an awful lot of difference in the cost of a business contract as opposed to a personal one (certainly when factoring in the tax relief available).

Non company phone contracts tend to have 'all you can eat data' allowances whereas business contracts tend to be gigabyte specific packages.

[BrandNewCUKUser]

Non company phone contracts tend to have 'all you can eat data' allowances whereas business contracts tend to be gigabyte specific packages.

I use giffgaff.com as they do unlimited data. The do rolling monthly 'goodybags' which are effectively contracts. Easy to set up in the company name, billing a company card etc. Very reasonably priced.

It's owned by O2 so uses their network.

[d000hg]

Non company phone contracts tend to have 'all you can eat data' allowances whereas business contracts tend to be gigabyte specific packages.

They do? All the personal contracts I've been looking at have limits 100/200/500/1000Mb