Can my business purchase a consumer landline and broadband deal?

[Tommy]

...or does it have to be a business land line and broadband to claim as a business expense?

As long as it is registered to my company's name and business address, do HMRC care what type of deal the provider is supplying?

(*edit sorry I think this should have gone in Accounting/Legal)

[yasockie]

Is it going to be used solely for the benefit of the business?
If not you attract benefit in kind as watching Sky Sports in HD is probably not your main business activity. Therefore you should normally only claim a proportional portion of the cost.
Other than that it's just like any other business decision - is the 'business' package worth the extra money for you (they usually offer better upload and possibly a better SLA and QoS)? If not go for the consumer-grade solution...

[eek]

it depends on what the premises are being rented for.

If its your own house and you live there monday to Sunday its going to be a hard sell, if its in a flat you use Monday - Friday from which you return home at weekends its probably OK.

[Tommy]

It's my own house, although I have a dedicated office.

I don't need a landline or broadband for everyday life. I use my mobile and tether my phone for 3g broadband.
I'm a web designer so I use the web to research and online is my business.

[eek]

My line rental and cable internet is less than 1 hour of my billable rate.

Is it really worth the hassle for the 20% of £35 you'll save every month.

[Wanderer]

...or does it have to be a business land line and broadband to claim as a business expense?

As long as it is registered to my company's name and business address, do HMRC care what type of deal the provider is supplying?

You say you "don't need a landline or broadband for everyday life". Does that mean you don't have a landline? Or that you have one but you could do without it but the business couldn't so the business should pay for it?

From what I can figure out, if your company provides you with broadband because you don't have it already then it doesn't matter if you use it for private use, it was primarily installed for business use and the fact that you would use it for private use is incidental to this. However, if you already have a land line and broadband then might have a job arguing with HMRC that you now want the company to pay for it.

You may be able to claim a portion of the costs though (perhaps even up to 100% if you are not bulltuliping us about it being solely for business use). Have you read of this link:

Specific deductions: use of home

[Tommy]

You say you "don't need a landline or broadband for everyday life". Does that mean you don't have a landline? Or that you have one but you could do without it but the business couldn't so the business should pay for it?

From what I can figure out, if your company provides you with broadband because you don't have it already then it doesn't matter if you use it for private use, it was primarily installed for business use and the fact that you would use it for private use is incidental to this. However, if you already have a land line and broadband then might have a job arguing with HMRC that you now want the company to pay for it.

You may be able to claim a portion of the costs though (perhaps even up to 100% if you are not bulltuliping us about it being solely for business use). Have you read of this link:

Specific deductions: use of home

I don't currently have a landline. It is a new home I am moving into. I have a dedicated office.

Like I said, if it wasn't for my business then I wouldn't need a particularly fast broadband speed package or a landline. But I need a line for my business, and broadband is a given in my line of work.
There will probably be some personal use once I have it installed. But it is my argument that I need a decent broadband package for the purposes of my business.

If you were me, how would you recommend I go about doing it? Put it in my own name or my company name?

[Wanderer]

I don't currently have a landline. It is a new home I am moving into. I have a dedicated office.

So it sounds like the broadband and phone will be provided for essential business use as it's primary purpose. Private use (if any) is therefore secondary and not significant, regardless of the amount of time spent on private use.

You should get professional advice though. Get your accountant to have a read of EIM21613 and see what they think.

The downside is that you will almost certainly have to get the contract in the company name and you may have to pay more for a "business" tariff so shop around and see what you can find.

[northernladuk]

As was said before is it really worth it? Remember all you are saving the tax on the 35 quid. The rest still comes out of your pocket in the end. Give the tax man plenty to chew on if he does ever come calling though.

[Tommy]

As was said before is it really worth it? Remember all you are saving the tax on the 35 quid. The rest still comes out of your pocket in the end. Give the tax man plenty to chew on if he does ever come calling though.

So what would you do if you were me?
New home. No phone line, broadband installed yet. Dedicated office. Mainly business use, will be a few hours private use in the evening perhaps.

Would you just set up broadband and a landline in my personal name and apportion the cost? Then there are some benefit in kind implications right? I just want to do the right thing.

Read this article:
Tax issues for a home-based limited company - FreeAgent

Decent read I thought. Not sure what you all think