Business Phone Account - did I do this right?

[TheFaQQer]

I'm sure, in the grand scheme of things, there are other, more important things to worry about than whether a phone contract is in co. name, or personal name, & whether you're ok to claim it, & call charges, as exps. If you get it wrong, then I'm sure someone will say 'pay it back', or whatever, as & when the error is discovered...if that were to ever happen, of course.

In the grand scheme of things, you may as well buy a big TV and claim it's a monitor, and if you were ever investigated say "I'll pay it back"...

[Contreras]

I'm sure, in the grand scheme of things, there are other, more important things to worry about than whether a phone contract is in co. name, or personal name, & whether you're ok to claim it, & call charges, as exps. If you get it wrong, then I'm sure someone will say 'pay it back', or whatever, as & when the error is discovered...if that were to ever happen, of course.

In the grand scheme of things, you may as well buy a big TV and claim it's a monitor, and if you were ever investigated say "I'll pay it back"...

Not really the same IMHO. Putting a domestic TV through the books is clearly evasion. Failing to get a mobile contract put in the right name is an admin error that, mentioned anecdotally by an accountant on here, is something HRMC would not tend to get excited about.

That's not to say that an OCD approach to claiming expenses correctly is in any way wrong though.

[Contreras]

When I asked my accountant about putting a hone through my company, she said I could do it as long as I 'keep my personal calls to a minimum'. Considering 99.99999% of my phone's use will be personal related, I've decided to revert to original policy of keep my proverbial nose clean and not abuse expenses. Therefore, I have cancelled my phone contract, returned my 'business-bought' phone and have ordered a one in my own name.

If you want to keep your nose clean then it's important to be able to rely on the advice received. I would be more concerned that your accountant appears to be ignoring/unaware of HMRC published guidance and concessions, and instead are making up rules purely based on their own opinion.

[heyya99]

If you want to keep your nose clean then it's important to be able to rely on the advice received. I would be more concerned that your accountant appears to be ignoring/unaware of HMRC published guidance and concessions, and instead are making up rules purely based on their own opinion.

She has given me the guidelines from HMRC. I think she has a point that if I'm buying the phone for persoanl use and using it for the occasional business use, it's hardly the approach HMRC are allowing.

[TheCyclingProgrammer]

She has given me the guidelines from HMRC. I think she has a point that if I'm buying the phone for persoanl use and using it for the occasional business use, it's hardly the approach HMRC are allowing.

I don't know what guidelines you are looking at but personal/business use mix is irrelevant. The provision of a single mobile phone to a director/employee is exempt from tax. It's that simple.

EIM21780 - Particular benefits: mobile telephones: general overview

http://www.hmrc.gov.uk/manuals/eimanual/EIM21779.htm

Provision of additional phones are subject to the normal wholly and exclusively rule.

[SueEllen]

She has given me the guidelines from HMRC. I think she has a point that if I'm buying the phone for persoanl use and using it for the occasional business use, it's hardly the approach HMRC are allowing.

I don't think you understood her.

You should try finding an accountant who can explain things to you in a way you understand them.

[northernladuk]

I don't think you understood her.

You should try finding an accountant who can explain things to you in a way you understand them.

and uses a lot of colourful pictures to help....

[heyya99]

There's a lot of jealousy in this forum.

[TheFaQQer]

I don't know what guidelines you are looking at but personal/business use mix is irrelevant. The provision of a single mobile phone to a director/employee is exempt from tax. It's that simple.

EIM21780 - Particular benefits: mobile telephones: general overview

EIM21779 - Particular benefits: mobile telephones: exemption for 2006/07 onwards: details

Provision of additional phones are subject to the normal wholly and exclusively rule.

This. If the accountant doesn't get such basic things right as this, what else are they missing?

[SteelyDan]

There's a lot of bull5hit & scaremongering in this forum.

FTFY

Rely on your accountant, that's why you have one (& common sense if possible) not a bunch of random armchair advisers/critics on here who, at times, are far too quick to pull the trigger on the uninitiated. They're generally a nice, knowledgeable bunch, but at times some of them show their teeth.