Hi all. I'm just about to start my first contract tomorrow, so am still very green with all this stuff. I have been reading about mobile phones and putting them through the business to avoid paying tax etc. I have also read that smartphones, so I imagine an iPhone would be classed as such, are treated as computers by HMRC, but provided no significant personal use takes place it is still tax exempt.
What I'm confused about, and this may sound stupid, is what happens re: paying the contract? I take it the ltd co. will still have to pay the contract cost out and this cannot be claimed back from HMRC, as they would effectively be paying for your business's phone then?
Am I right in thinking that the only benefit here is that I'd be paying for my contract minus VAT because it's coming out of the business account?
Again, I know it sounds stupid/fairly obvious, but I just wanted to be 100% sure I have got this right in my mind.
What I'm confused about, and this may sound stupid, is what happens re: paying the contract? I take it the ltd co. will still have to pay the contract cost out and this cannot be claimed back from HMRC, as they would effectively be paying for your business's phone then?
Am I right in thinking that the only benefit here is that I'd be paying for my contract minus VAT because it's coming out of the business account?
Again, I know it sounds stupid/fairly obvious, but I just wanted to be 100% sure I have got this right in my mind.
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