Originally posted by Kess
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Reply to: Mobile Phone Through Limited Company
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Previously on "Mobile Phone Through Limited Company"
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Originally posted by Robwg View PostEvery Accountant I have spoken to (including SJD who I am with) say putting your company address in the bill is enough.
I've always thought that the contact needs to be in the name of the company (this is, after all, what the HMRC guidelines suggest). For what is might cost to be on a business tariff, you may as well do it right to avoid the risk that HMRC will clobber you for charges, and then go through your other expenses etc.
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Originally posted by swamp View PostOne of my colleagues was misinformed by one of the people at SJD over the mobile BIK issue, so I wouldn't necessarily trust their advice on this.
Change your personal contract to a business one. At the end of the day you're worrying about saving such small sums of money by blagging a personal account as your Ltd. you might as well do it properly.
Don't know though whether they do PAYG for Business...
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One of my colleagues was misinformed by one of the people at SJD over the mobile BIK issue, so I wouldn't necessarily trust their advice on this.
Change your personal contract to a business one. At the end of the day you're worrying about saving such small sums of money by blagging a personal account as your Ltd. you might as well do it properly.
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Every Accountant I have spoken to (including SJD who I am with) say putting your company address in the bill is enough.
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Originally posted by Kess View PostThis still leaves open the question of whether, rather than a contract, a more cost-effective PAYG phone can be bought by and funded by the company for light users like me?
Can anyone give a learned opinion on this - then I think this thread can be ended.
Yes, you can use PAYG phone, although you'll either have to reclaim the expenses through your company or pay via your company bank account.
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The provision of one mobile phone is exempt from any tax charge... To qualify, the contract must be in the name of the company and paid from the company bank account.
Can anyone give a learned opinion on this - then I think this thread can be ended.
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Originally posted by Nixon Williams View PostThe provision of one mobile phone is exempt from any tax charge. The exemption covers the telephone itself, any line rental and the cost of private calls paid by the employer on the telephone.
Notes:
•The number of phones provided for private use is restricted to one;
•Mobile phones provided to members of your family and household are excluded;
•To qualify, the contract must be in the name of the company and paid from the company bank account.
If you wish to claim for a personal mobile phone, then you can only claim for the business calls, you cannot claim for the rental cost or any private calls.
I hope this is clear!
Alan
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Originally posted by Sausage Surprise View PostCan I try and summarise this thread
Are we saying that if I change my mobile billing address to that of my company and change the DD to come out of my company bank account then that's OK?
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Can I try and summarise this thread
Are we saying that if I change my mobile billing address to that of my company and change the DD to come out of my company bank account then that's OK?
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Originally posted by css_jay99 View PostAlso I would like clarification on treatment on two scenarios below in company accounts. would the £199, £299 & £400 respectively below be classified as capital expenditure hence not chargeable to P&L ?
1) Outright buy of a phone for £500 without contract but to use in PayAsUgo
2) if contract is £199 for the phone + £35 line rental
3) if I change my current personal contract to Ltd co. and then ask for a new phone thereby attracting a £400 Upgrade fee
The HMRC guidelines (EIM21779) state: "In most circumstances the provision of one mobile 'phone to a director or employee for private use is exempt from charge. The exemption covers the phone itself, any line rental and the cost of private calls paid for by the employer on that phone." It doesn't seem to matter by what mechanism the phone and calls are funded; I reckon it's within the rules for MyCo to buy a PAYG phone and then just pay for credit as needed.
Can anyone confirm my interpretation of the rules (perhaps one of our friendly accountants)?
Kess
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Originally posted by Nixon WilliamsWe do in our Starter Pack for new clients!
Hmmm... will have to re-read the starter pack.
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Originally posted by css_jay99hi, i would also like to know the answer to Limited's last question. Is that enough for HMRC ?
also I just 3 months into a new 1 month contract but would like to get the N95 phone. would they agree to an upgrade now ?
Also I would like clarification on treatment on two scenarios below in company accounts. would the £199, £299 & £400 respectively below be classified as capital expenditure hence not chargeable to P&L ?
1) Outright buy of a phone for £500 without contract but to use in PayAsUgo
2) if contract is £199 for the phone + £35 line rental
3) if I change my current personal contract to Ltd co. and then ask for a new phone thereby attracting a £400 Upgrade fee
cheers
css_jay99
bump bump !
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Originally posted by css_jay99hi, i would also like to know the answer to Limited's last question. Is that enough for HMRC ?
also I just 3 months into a new 1 month contract but would like to get the N95 phone. would they agree to an upgrade now ?
Also I would like clarification on treatment on two scenarios below in company accounts. would the £199, £299 & £400 respectively below be classified as capital expenditure hence not chargeable to P&L ?
1) Outright buy of a phone for £500 without contract but to use in PayAsUgo
2) if contract is £199 for the phone + £35 line rental
3) if I change my current personal contract to Ltd co. and then ask for a new phone thereby attracting a £400 Upgrade fee
cheers
css_jay99
help needed on my query please
cheers
css_jay99
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