Should I claim my mobile phone ?

[TheFaQQer]

I pay for PAYG mobile top-ups through the company and my accountant has never queried it.

So how do you prove that you had no personal benefit from it? Have you got another mobile phone for personal calls?

HRMC says that the company can

reimburse the costs of identifiable business calls on an employee's 'pay as you go' mobile phone, or you provide the employee with a 'top up' to be used only for business calls.

so how do you prove that this is a valid expense?

[kevpuk]

For me, I just had MyCo purchase my handset and I use one of my own SIMs in it.
This, alone, leads to a worthwhile saving against the handset price, as no tax is paid on it.......As I recall, it means that when the handset is sold on (I tend to be a serial upgrader!) the proceeds belong to MyCo, not me.

[The Spartan]

For me, I just had MyCo purchase my handset and I use one of my own SIMs in it.
This, alone, leads to a worthwhile saving against the handset price, as no tax is paid on it.......As I recall, it means that when the handset is sold on (I tend to be a serial upgrader!) the proceeds belong to MyCo, not me.

See I did think of doing that but instead I bought myself a new Android handset and put a PAYG sim in my old Windows 7 phone

[psychocandy]

I dont bother. Its too much hassle getting the contract in company name.

Also, you get a better deal as a personal contract rather than a business one which cancels out the 20% CT saving in most cases. Unless of course, you spend loads on business calls etc.

For me, £30 a month personal contract and never going over call allowance was better than getting a business contract for more.

[Contreras]

I pay for PAYG mobile top-ups through the company and my accountant has never queried it.

So how do you prove that you had no personal benefit from it? Have you got another mobile phone for personal calls?

HRMC says that the company can

reimburse the costs of identifiable business calls on an employee's 'pay as you go' mobile phone, or you provide the employee with a 'top up' to be used only for business calls.

so how do you prove that this is a valid expense?

That is a good question.

My position is that the handset belongs to the company* so it's perfectly legit to use it for personal calls. If HMRC want to rule otherwise then they are on shaky ground, IMHO & IANAA.

Even claiming for business use with personal mobiles there has to be an element of "take my word for it", just as there is with mileage allowance and sundry expenses. If it's reasonable and everything else is in order then the inspector should bid you a good day and be on their way. If it looks like you're taking the p..$ then they'll dig deeper to find something concrete to hang you on (hopefully fraud). This is what I know of "how it used to be" from an ex-inspector - they have bigger fish to fry.

If someone can site a case where lack of itemised billing caused an investigation to escalate then I might be bothered. However, I don't take the p..$, I do keep a proper ledger, and numbered receipts! If HMRC want to come look then I have insurance to represent me on tax matters.

Ultimately the amounts are sufficiently small that:
a) it's unlikely to be challenged, IMHO & IANAA.
b) I'd just roll over and pay the BiK if it ever was challenged.

* well OK, it was my handset until I donated it to the company.

[mudskipper]

I dont bother. Its too much hassle getting the contract in company name.

Also, you get a better deal as a personal contract rather than a business one which cancels out the 20% CT saving in most cases. Unless of course, you spend loads on business calls etc.

For me, £30 a month personal contract and never going over call allowance was better than getting a business contract for more.

Myco bought a handset and has a £7 a month SIM only contract with EE which more than covers my calls, texts and data. No hassle.

[Wanderer]

For me, I just had MyCo purchase my handset and I use one of my own SIMs in it.

Yep, buy a full price handset on the company credit card and get one of the real cheap sim only deals. Sorted.

As I recall, it means that when the handset is sold on (I tend to be a serial upgrader!) the proceeds belong to MyCo, not me.

Yes, that's true.

I'm sure there are also a lot of company directors who are "careless" with their phones and "lose" or "damage" them so they have no value to the company any more, then go and buy a new one too...

[kevpuk]

I'm sure there are also a lot of company directors who are "careless" with their phones and "lose" or "damage" them so they have no value to the company any more, then go and buy a new one too...

Surely not - that would be, like, naughty

Then again, just bought a Jag, so there might be a bit of the cad/bounder/rogue in me that I wasn't previously aware of

[TheFaQQer]

Myco bought a handset and has a £7 a month SIM only contract with EE which more than covers my calls, texts and data. No hassle.

That's what I do, under the T-mobile brand.

[TheFaQQer]

My position is that the handset belongs to the company* so it's perfectly legit to use it for personal calls. If HMRC want to rule otherwise then they are on shaky ground, IMHO & IANAA.

I don't think HMRC would be on shaky ground at all - their guidance is quite clear if there is no contract or the contract is not in the company name. The link I posted above says that if the PAYG SIM is paid for by the company, then all business calls can be claimed, but nothing personal.

Even claiming for business use with personal mobiles there has to be an element of "take my word for it", just as there is with mileage allowance and sundry expenses.

You would have a phone bill, which clearly shows the calls which are business related and which are personal calls. So although you wouldn't expect HMRC to start calling each number, it's fairly easy to show that at least you have looked at the bill and identified which calls can be claimed and what can't.