mobile phone - VAT

[TheCyclingProgrammer]

Just be aware that depending on the cost of the phone your accountant may decide it is an fixed asset. This means the cost will be depreciated over 3 years.

I used to capitalise my handsets (new iPhones so value ranging from £400-600) but now don't bother, not on a 2 year upgrade cycle.

[konsultant]

Get a valid VAT invoice for the handset in the company name and you can reclaim the VAT. If the phone is for mixed personal/business use there's a limit of one phone per employee but you do not need to apportion the VAT for any personal use. No limits on the number of phones if they are just for business use but each one still needs to pass the wholly and exclusively test.

The phone itself can be offset against CT as a revenue expense or using capital allowances if you capitalise the handset (depending on the value and your company policy).

Perfect, thank you

[Eirikur]

If a phone is £100 the VAT is not £20, but £16.67 You know how to calculate VAT right?