Reply to: Mobile phone through company

[dx4100]

If your invoices and plan is in the company name then I can't really see what the problem is.

I suppose I don't have a "plan"... Its all in a web portals terms and conditions in the "cloud"... And the T&C now say don't use for business...

I will swap over to O2 and not give hector any fire power.

[TheCyclingProgrammer]

If your invoices and plan is in the company name then I can't really see what the problem is.

[dx4100]

I am now thinking my arrangement with Giff Gaff would qualify. Its a 30 day agreement and its in the Company Name. I think its at the very least its arguable. Its not PAYG.

Either way I can't be bothered with sitting in a grey area and will switch out. Plus I am in violation of the T&Cs with GiffGaff now as I use it for business so best just leaving. Sure it didn't say that in the past.

[dx4100]

So you're on a personal tariff? So how'd you pay that through the company?

Havent the payment got to come directly out of business account too?

Company Name is on the invoices and payments come direct out of business bank account for the SIM with GiffGaff.

I bought the phone direct from business using cash. But that is back when I was on a business tariff.

[TheCyclingProgrammer]

OK. So can you pay for phone via personal credit card and claim as an expense? Or does invoice need to be in company name?

Does any of this? e.g phone owned by company, contract personal or both via company raise any issues re: personal use of said phone?

No. Yes. No.

YourCo can supply you with a phone, or a SIM with paid contract, or both as a package. You can bring your own device (and use the company SIM) or your own SIM (used in the company phone) but you cannot claim for anything that wasn't purchased in the company name (but you can business claim calls on a personal SIM).

You could conceivably pay for the phone on your own credit card so long as the purchase was clearly in the company name. This wouldn't be an expense claim but a case of the company owing you the money (you can think of it as a directors loan really). Though there should be no reason to do this - it's best to buy company purchase with the company card - I had to do it once as the Apple Store wasn't accepting my business debit card for some reason. Invoice was in company name though.

[TheCyclingProgrammer]

Depends how heavy a user you are. Definitely buy the handset through the company (invoice in company name) but if you're a light user you might find a personal SIM deal is cheaper.

Any SIM plan or contract needs to be in the company name or it's not claimable without incurring a BIK. But you can still claim business calls separately in this case. Others may claim personal contracts but this is wrong, even if they are getting away with it. See here:

https://www.gov.uk/expenses-and-bene...s/whats-exempt

And here:

https://www.gov.uk/expenses-and-bene...report-and-pay

For me a personal SIM deal (£15/month with Three) was the best deal at the time.

If you can find a good business tariff then definitely put it through the business. It's easy enough to compare whether it's cheaper to buy the phone outright or pay for it through the tariff.

The rule regarding personal use is that YourCo can provide one phone (whether it's just the handset, the SIM or both) for mixed use. There is no limit on the number of phones provided exclusively for business use.

[psychocandy]

OK. So can you pay for phone via personal credit card and claim as an expense? Or does invoice need to be in company name?

Does any of this? e.g phone owned by company, contract personal or both via company raise any issues re: personal use of said phone?

[psychocandy]

No tulip Sherlock. You know they've been running this model for about 15 years don't you?

I did notice! ;-) But of course after the two years they'll still charge you the increased cost per month if you dont notice.

[psychocandy]

I was told by accountant that the invoices / receipts for the sim payments must be in the company name and not mine. So I think this need to be considered if doing a personal deal. Giff Gaff lets me put my company name on the invoices.

Havent the payment got to come directly out of business account too?

[psychocandy]

I bought my own phone through the company. I pay for GiffGaff sim only through my company.

Business tariffs are a rip off.

So you're on a personal tariff? So how'd you pay that through the company?

[dx4100]

Well, you must have been originally to get here in the first place

It wasn't really... It is a bit complex but I went through a process of closing my company last year and then reopening it again before it was struck off as I went back to contracting.

[MrMarkyMark]

It seems that HMRC won't let you do "PAYG"... Although this is a 30 day thing. So not sure where it sits. I am guessing its not in a good position.

To be honest for the couple of £££s either way I am not bothered. Just signed up for O2 Business. Issue goes away. Might have to repay a bit of money mind. Couple months of mobile bills.

Well, you must have been originally to get here in the first place

[dx4100]

That's a fairly recent thing - it used to be that you could use it for business but they wouldn't cover you for loss of business etc. if the network went down.

Although the "we will cancel the service if you're a business user" is in the summary at the top of the T&Cs I couldn't see any reference to is in the actual terms and conditions - might be worth contacting them and asking if it's a big deal.

It seems that HMRC won't let you do "PAYG"... Although this is a 30 day thing. So not sure where it sits. I am guessing its not in a good position.

To be honest for the couple of £££s either way I am not bothered. Just signed up for O2 Business. Issue goes away. Might have to repay a bit of money mind. Couple months of mobile bills.

[missinggreenfields]

There is no "contract" other than the sites terms and conditions. Which I just noticed said no business use.

So yup, I am going to have to change it. Luckily I only recently changed. My bad, tulip happens...

That's a fairly recent thing - it used to be that you could use it for business but they wouldn't cover you for loss of business etc. if the network went down.

Although the "we will cancel the service if you're a business user" is in the summary at the top of the T&Cs I couldn't see any reference to is in the actual terms and conditions - might be worth contacting them and asking if it's a big deal.

[northernladuk]

After a new phone now. Galaxy S7 more than likely. Noticed, I can get a better sim only contract for £15 a month (12 month min) or a phone included one for £37 a month (24 months).

So, basically, you're paying for the phone over the 24 months.
.

No tulip Sherlock. You know they've been running this model for about 15 years don't you?