Reply to: Company bicycle as asset including GPS cycle computer?

[northernladuk]

There you go again not understanding the tax rules.

Broadband, phone contracts even school fees, holidays etc are all allowable for the company if the contract and invoice is made out to the company.

The other side of the coin is what you declare on your P11D as a benefit.

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[john@UKCA]

No. Your house has broadband which is used by all members of the family and sucks many gig for Netflix and all the other social stuff you do. For 8 hours a day you tinker on it. That's never going to be for business use with incidental private. If you are one of these accountants that just says yeah do it you'll be fine then maybe, but that's not the type of accountant most people want.

Talk about not understanding your customers With all this tulip advice out on the web how on earth are you going to convince contractors pay you for the same?

There you go again not understanding the tax rules.

Broadband, phone contracts even school fees, holidays etc are all allowable for the company if the contract and invoice is made out to the company.

The other side of the coin is what you declare on your P11D as a benefit.

[SueEllen]

They tell me to claim the home office allowance, yes.

This is one of the big outfits that have a presence on this website so I assume their advice can be trusted...

When HMRC come around to query everything it's you who pays the fines not the accountant. Therefore it's up to you to understand when and why you can claim something.

[northernladuk]

They tell me to claim the home office allowance, yes.

This is one of the big outfits that have a presence on this website so I assume their advice can be trusted...

Well we don't know your circumstances and how much time you work from home i,e,whether it's mainly for the use of business or if you are a 5 days a week on site contractor. I'd suggest you go back and ask them to explain this in great detail until you are satisfied about the risk you are shouldering. Or you could just sit there and take their advice.. Up to you.

[Gillingham Jilly]

There are accountants that don't understand what we do, have a very low tolerance to risk and will tell you anything you want to hear.
It's up to you to listen and understand the situation, do some research and apply some common sense. It could be that it's true for your situation.. But I doubt it.

What did they suggest claiming for use of office?

They tell me to claim the home office allowance, yes.

This is one of the big outfits that have a presence on this website so I assume their advice can be trusted...

[northernladuk]

My accountant has always told me that broadband, landline and mobile are 100% expensable if the contract are in the company name.

And I've been doing this for years

There are accountants that don't understand what we do, have a very low tolerance to risk and will tell you anything you want to hear.
It's up to you to listen and understand the situation, do some research and apply some common sense. It could be that it's true for your situation.. But I doubt it.

What did they suggest claiming for use of office?

[Gillingham Jilly]

No it's not.

The only way to get around it is to have 2 broadband connections - one for business and one for personal use.

The same way some people have (or use to have) two landlines - one for business and one for personal use.

If you only have one broadband connection even if you use it for business 60 hours a week because it's in your property and it's available for you to use the times you are not working the personal use is greater than the business use, so the usage isn't incidental.

My accountant has always told me that broadband, landline and mobile are 100% expensable if the contract are in the company name.

And I've been doing this for years

[SueEllen]

Of course broadband is allowable - just get the contract for the line & broadband in the company's name. Put a nominal amount if you wish on the p11d for private use at the end of the tax year.

For any IT Contractor surely the primary purpose of broadband is business with any private use incidental?

No it's not.

The only way to get around it is to have 2 broadband connections - one for business and one for personal use.

The same way some people have (or use to have) two landlines - one for business and one for personal use.

If you only have one broadband connection even if you use it for business 60 hours a week because it's in your property and it's available for you to use the times you are not working the personal use is greater than the business use, so the usage isn't incidental.

[northernladuk]

Of course broadband is allowable - just get the contract for the line & broadband in the company's name. Put a nominal amount if you wish on the p11d for private use at the end of the tax year.

For any IT Contractor surely the primary purpose of broadband is business with any private use incidental?

No. Your house has broadband which is used by all members of the family and sucks many gig for Netflix and all the other social stuff you do. For 8 hours a day you tinker on it. That's never going to be for business use with incidental private. If you are one of these accountants that just says yeah do it you'll be fine then maybe, but that's not the type of accountant most people want.

Talk about not understanding your customers With all this tulip advice out on the web how on earth are you going to convince contractors pay you for the same?

[DaveB]

Of course broadband is allowable - just get the contract for the line & broadband in the company's name. Put a nominal amount if you wish on the p11d for private use at the end of the tax year.

For any IT Contractor surely the primary purpose of broadband is business with any private use incidental?

Not if you work on client sites 5 days a week. The only use for business then would be a couple of hours at the weekend or the evenings to do admin. You've also got to consider whatever other family members use it for.

If you WFH regularly for 3 or 4 days a week then it might be different, but otherwise I can't see that you could justify it.

[john@UKCA]

Broadband Allowable

Broadband isn't allowed as the business use can be a lot less than personal.

Of course broadband is allowable - just get the contract for the line & broadband in the company's name. Put a nominal amount if you wish on the p11d for private use at the end of the tax year.

For any IT Contractor surely the primary purpose of broadband is business with any private use incidental?

[northernladuk]

If the company can't buy tools then perhaps I should buy them out of my own pocket and bill my co an hourly rate as a bike mechanic!

Er.. Right on dude : You done?

[Rafd]

If the company can't buy tools then perhaps I should buy them out of my own pocket and bill my co an hourly rate as a bike mechanic!

[Contreras]

Apologies for digging this one up but my question is in the same vein.. I am planning to buy a bike as a company asset (and yes it is almost entirely for commuting). Can my co also buy tools, parts etc and pay for repairs without incurring BIC?

You can't expense expendables like tubes I can't buy engine oil or tyres for my car. However you can use the amount you claim for mileage to pay for such expendables.

In other words any safety equipment including a pump, high viz, lights and a water bottle can be directly expensed. All the rest have to come out of your mileage cost.

That's different as your car is presumably not a company asset.

It would be easier to just buy the tools out of pocket (duality of purpose), rather than argue the toss with HMRC, but consumables within reason are fair game - IMHO.

[northernladuk]

So are bike tools treated differently to other tools - for example a computer?

Yes. And phones.. We need them to do work so there are common sense exceptions. HMRC are well aware there maybe an element of personal use but to ease complications this is expected. It has to be some element, not the major one though. Broadband isn't allowed as the business use can be a lot less than personal. These exceptions haven't been made for bike tools.

Also a computer is used directly as part of your business. Bike tools aren't. They are to fix a perk.