Originally posted by zonkkk
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Mobile phone & contract - Personal vs Business"
Collapse
-
-
Originally posted by radish2008 View PostWouldn't we all satisfy the exemption ?
Leave a comment:
-
Originally posted by TheCyclingProgrammer View PostNot unless it's in the company name; if an director/employee contracts with the provider and is reimbursed, it's a taxable BIK:
https://www.gov.uk/expenses-and-bene...report-and-payWhat's exempt ?
You don’t have to report anything to HM Revenue and Customs (HMRC) or deduct and pay tax and National Insurance if both the following apply:
you provide your employee with only one mobile phone or SIM card
the phone contract is between you and the supplier
I don't actually claim anyway so don't really care.
Leave a comment:
-
Originally posted by TheCyclingProgrammerYes you can get personal deals cheaper than £15/month (or even £12/month if you account for the CT saving) but if you are paying for a plan that cheap, are you really fussed about saving £10-20/year in tax?
That works out a saving of roughly £20/month (£480 / 24 months contract) (assuming there is a way to save on VAT and corporation tax on the personal contract).
While it is not much, it gives me a sense of enormous well being (you know, like that guy that feeds the pigeons and sparrows in the park(life)). :-)
I guess the best way forward is to buy the phone out right on the business, and then get a personal cheap monthly mobile plan to suit my needs.
Thank you all for your replies.
Leave a comment:
-
Originally posted by radish2008 View PostThe view of my previous accountant has always been that you can claim a personal mobile contract as an expense.
https://www.gov.uk/expenses-and-bene...report-and-pay
If your employee arranges the phone but you pay the supplier
You must:
report the cost on form P11D
pay Class 1 National Insurance through payroll
Your employee arranges the phone but you pay the supplier or reimburse them
The amount to put through payroll is the amount of monthly tariff you reimburse, plus the cost of any private calls above the tariff if you reimburse these as well.
The amount you should report is the cost of any business calls you reimburse that are on top of the monthly tariff.
https://www.gov.uk/hmrc-internal-man...anual/eim00580
Getting the billing address changed to YourCo and paying directly from the company as suggested above *may* pass inspection at a glance but probably wouldn't stand up to scrutiny from a particularly officious inspector if it ever came to that - the contract (and therefore the liability to pay the bill) is still between you personally and the provider. I'd also question whether or not it would stand up to a VAT inspection as well.
It's your choice, but there are plenty of cheap business deals out there. I have a business Virgin Mobile SIM and business broadband account - I get a £5/month discount on the latter for 24 months as I took out the mobile SIM and the SIM itself is only £15 + VAT a month for more data, minutes and texts than I could ever need.
Yes you can get personal deals cheaper than £15/month (or even £12/month if you account for the CT saving) but if you are paying for a plan that cheap, are you really fussed about saving £10-20/year in tax?Last edited by TheCyclingProgrammer; 13 July 2018, 10:48.
Leave a comment:
-
whilst not strictly the way you should do it....
1) get yourco paying the bill by direct debit,
2) change the billing address to include the company name
A cursory inspection to that and it looks like a genuine business contract. Someone would have to read the contract to find out it's a personal one. And you don't have to keep a copy of that original document after 6 years.
IANAL
Leave a comment:
-
Originally posted by zonkkk View PostThe business deals for mobile phones on contract are more expensive than personal ones (even when you account for VAT and corporation tax saving).
Are there any options to have a personal contract and have the company pay for it (e.g. through expenses - so you get VAT back and the corporation tax saving) without any other tax implications?
Leave a comment:
-
Mobile phone & contract - Personal vs Business
The business deals for mobile phones on contract are more expensive than personal ones (even when you account for VAT and corporation tax saving).
Are there any options to have a personal contract and have the company pay for it (e.g. through expenses - so you get VAT back and the corporation tax saving) without any other tax implications?Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: