Company Secretary - mobile phone charge

[tractor]

...

Alas, there are quite a lot of things that aren't hard and fast in the tax world, it all comes down to "wholly, exclusively and necessarily", which is in the end a debate between you / your accountant and the tax man.

In practice - there are always exceptions - its not something HMRC tend to pick up on - that I can tell you from having looked after 2500 or so clients.

IME is low risk.

However, if you fall foul of a records inspection for any reason, this and any other borderline issues will most likely be tagged onto the end of a demand so you really do need to look at the whole picture when making individual decisions on what you do and don't claim.

[Jeremiah@RHJAccountants]

To Keep things very simple just make the company sec an employee of your company and then you can put the mobile phone cost and contract through the business.

Your accountant can easliy put the company sec on the payroll records if they are not on.

Here is a link to the one mobile phone per employee that was big news in Feb this year

HM Revenue & Customs: Revenue & Customs Brief 02/12

As mentioned make sure the contract is in the company name and the payments come out of the business bank account and your sorted as long as you can get a good business contract!

[ChimpMaster]

To Keep things very simple just make the company sec an employee of your company and then you can put the mobile phone cost and contract through the business.

Your accountant can easliy put the company sec on the payroll records if they are not on.

Here is a link to the one mobile phone per employee that was big news in Feb this year

HM Revenue & Customs: Revenue & Customs Brief 02/12

As mentioned make sure the contract is in the company name and the payments come out of the business bank account and your sorted as long as you can get a good business contract!

I'm not dissing what you're saying here, and the advice is of course appreciated, but to the OP: all of this to save what, £100 a year in tax?

Walk the wire but be wary of crossing it.

[Jeremiah@RHJAccountants]

I'm not dissing what you're saying here, and the advice is of course appreciated, but to the OP: all of this to save what, £100 a year in tax?

Walk the wire but be wary of crossing it.

No problem at all this is just one of the options to the OP as the tax saving may not be worth it if the business contract is much higher than a personal contract.

Only the OP can decide this by seeing what phone contracts are on the market.

A £100 to some is a fortune

[Platypus]

The Co.Sec. is an officer of the company, they don't necessarily do any work. TBH it's sort of odd that the Co.Sec would have a company phone unless they also do work for the company, in which case, aren't they also an employee, and if not, why not?

See Company secretary – The role of the Company Secretary

[northernladuk]

No problem at all this is just one of the options to the OP as the tax saving may not be worth it if the business contract is much higher than a personal contract.

Only the OP can decide this by seeing what phone contracts are on the market.

A £100 to some is a fortune

And if that is the case then even more reason not to do it. The bill they will get after being investigated on top of everything else could be astronomical using that scale.

[Jeremiah@RHJAccountants]

And if that is the case then even more reason not to do it. The bill they will get after being investigated on top of everything else could be astronomical using that scale.

Agreed if the company sec is not an employee i personally would air on the side of caution and not do it.

However if the company sec is an employee of the company then HMRC states one mobile phone per employee is allowable.

[FiveTimes]

Agreed if the company sec is not an employee i personally would air on the side of caution and not do it.

I don't want to sound pedantic but "air on the side of caution" ?

If the company sec is not an employee then you cant do it plain and simple. (IMHO)

[Jeremiah@RHJAccountants]

I don't want to sound pedantic but "air on the side of caution" ?

If the company sec is not an employee then you cant do it plain and simple. (IMHO)

Yes but we as accountants can only advise a the end of the day the OP can do whatever he or she wants as director of there company.

If it was me and my client asked this i would say don't do it if they are not an employee i have heard other accountants none on here thankfully say otherwise.

As they see it as low risk and that HMRC may not pick up on it.

[captainham]

Agreed if the company sec is not an employee i personally would air on the side of caution and not do it.

However if the company sec is an employee of the company then HMRC states one mobile phone per employee is allowable.

(pedantic hat on)

*err