Anyone know how to order a contract mobile phone?

[Ticktock]

Its a £180 a year contract. At 20% corporation tax that is a grand total of £36 saved.

No it's not. It may only be £36 corporation tax but that's not the only benefit.
It's also a reduction of £180 on the amount you need to pay out of your post-tax income (from salary / dividends), giving you an extra £180 a year in your pocket. So that's over £200 better off so far.
If for every expense you say "That's only £10 a year" or whatever, when in fact that would be about £70 a year (using rough figures) then it all adds up.

At what level do you feel scanning and emailing a couple of documents becomes worthwhile?

90% of my calls will be personal. So what? HMRC clearly say it doesn't matter what the split is - you claim the lot. Very recently is a couple of years at least now, so that's at least £600 you've missed out on between you and your company, for approx 10 minutes work.

[minestrone]

So he is going to pay 180 quid a year for a mobile from his company and he is going to get 200 back.

Yes, that is exactly how the system works.

[Ticktock]

So he is going to pay 180 quid a year for a mobile from his company and he is going to get 200 back.

Yes, that is exactly how the system works.

Yes, because I didn't think it through properly. He'd still be better off, just not so much.

If he did it "properly" he save £36 a year of corporation tax. After paying the contract from the company, the offset means the £180 contract would cost £144.
He would personally also have £180 left in his pocket, if other expenditure were the same, which could be invested / saved / pissed up a wall.

Still better off. Considering I've just scrabbled about switching to a Santander 123 account, opening an HSBC Regular Saver, switching to a new cashback credit card, etc, and all for 1 or 2% benefit over the old accounts, I welcome any low hassle savings I can get.

Plus it means I can legitimitely have the company buy the handset.

[suityou01]

2 phones at £40 per month each.

£80 per month * 12 = £960.

So that's nearly £1000 off my profit, and I don't have to do itemised expenses. Seems like it's worth the hassle initially.

[doodab]

It's also a reduction of £180 on the amount you need to pay out of your post-tax income (from salary / dividends), giving you an extra £180 a year in your pocket.

No it doesn't. The £180 that doesn't come out of your post tax income comes out of the company coffers instead, which reduces the amount available to you as income. The only saving is the tax.

[minestrone]

2 phones at £40 per month each.

£80 per month * 12 = £960.

So that's nearly £1000 off my profit, and I don't have to do itemised expenses. Seems like it's worth the hassle initially.

I can see why you have credit rating issues.

Get a company phone for 50 quid and stick a 8 quid a month sim only card in it.

[Ticktock]

No it doesn't. The £180 that doesn't come out of your post tax income comes out of the company coffers instead, which reduces the amount available to you as income. The only saving is the tax.

If your company isn't building retained profits (i.e. your net after VAT / CT / Accountants, etc) and you're only taking out up to the 40% tax level then you're not charging enough.

[minestrone]

If your company isn't building retained profits (i.e. your net after VAT / CT / Accountants, etc) and you're only taking out up to the 40% tax level then you're not charging enough.

Well now you have shown us the way with your magic mobile phone buying money making system we will all be retiring early.

[Ticktock]

Well now you have shown us the way with your magic mobile phone buying money making system we will all be retiring early.

I guess you don't claim mileage as it's such a small amount, and it comes out of your company coffers.
Or train tickets - less than a days billing for a months ticket to London so not worth it.
And don't claim subsistence, it's only a couple of quid a day, and again, comes from company coffers.

[doodab]

If your company isn't building retained profits (i.e. your net after VAT / CT / Accountants, etc) and you're only taking out up to the 40% tax level then you're not charging enough.

If you need to worry about saving the corporation tax on your mobile phone bill you're not charging enough