Expenses just prior to going LTD

[philip@wellwoodhoyle]

Having the bills made out in the company name "may" give you the beneficial tax status, but only if the tax inspector doesn't look any deeper. If s/he wants to, they can find out who the subscriber is, and if it isn't the company, then they'll get you for tax/NIC on the benefit in kind. It is better to get the subscriber changed to the company name, not just the billing address.

[fzbucks]

Hi

I was wondering if I can claim expenses which I have incurred just prior (couple of weeks) to going LTD but which will be used for business - things such as car servicing and LPG conversion. I originally paid for them via my credit card and/or cash.

Also, am I able to change my personal mobile phone to a business one - as I do/will be using it for business.

If the above is possible, how is it arranged?

Thanks.

Before transferring my phone contracts to a business plan with T-Mobile I phoned up the customer services and just asked them to modify the address to include the company name at the top - looks identical to the ones sent to my company from the business plan

[ASB]

On my mobile phone bill, it has both my LTD company name, and my own name. Is this enough to allow it to be a business expense?

thanks

Strictly no. Because the contract is between mobile co and you, not mobile co and you Ltd.

However, a lot of people do this because it is often much easier than getting a contract between the company and the provider.

[marc9477]

Mobile Phone Bill

On my mobile phone bill, it has both my LTD company name, and my own name. Is this enough to allow it to be a business expense?

thanks

[TheFaQQer]

What happens with a Pay as u Go mobile? the topups could be counted as expenses?

It's difficult to prove that they were all business calls, since you have no receipt for the calls that you made. When I was permie, the consultancy I worked for refused to pay for these, since there was no proof (my argument was that I had two phones, one for work on pay as you go, one for me on contract, but it fell on deaf ears).

I'd be wary about trying to claim them, to be honest - see if you can get a cheap contract one instead might be better.

[RockyBalboa]

If the car is owned personally by you, then you have to pay for its purchase and all expenses/running costs. You claim 40p per mile from your company for all business mileage undertaken, nothing more.

Hi

Is it 40p per mile up to a certain threshold?

I take it I cannot claim for the LPG conversion on the car?

You can claim expenses that are business-related for a period of up to 6 months prior to incorporation of the company, though they do have to be business-related. So, things like buying a laptop would qualify. I'm not sure that an LPG conversion on your car really qualifies, though....

Mobile phones are one of the bigger benefits of running your own limited company. Yourco can pay for all mobile phone line rental and calls without incurring a taxable benefit in kind to you, provided that the phone contract is in the company's name. If you contact your phone company, they should be able to amend your bill to be in your company's name, rather than your own.

If the phone contract is in your name, then you can only claim work-related phone call charges, anything else will be treated as a taxable benefit.

[Hint, you can also also do the same thing for other officers/employees of the company if, for example, your partner is also the company secretary]

What happens with a Pay as u Go mobile? the topups could be counted as expenses?

[philip@wellwoodhoyle]

Thanks so far guys.

In regards to the car, it is my own car.. not bought for or by a company. Does this mean I cannot claim for anything to do with my private vehicle that is used for business travel (except fuel)?

In regards to the LPG conversion, I have had this done as I expect to be travelling a lot more due to going contracting/LTD.. so this is with the business in mind, totally. Same for the car servicing, although, I guess one could argue the car needs to be serviced regardless. As these were invoiced to me directly and are now showing on my credit card statement, how do I arrange to 'put them through' as company expenses? (I only have a week or so to pay them off my credit card).

In regards to the mobile phone, it is currently in my name but from what you guys have said, I am better off ringing the phone co and getting it transferred to my LTD co. name once set-up.

If the car is owned personally by you, then you have to pay for its purchase and all expenses/running costs. You claim 40p per mile from your company for all business mileage undertaken, nothing more.

[RockyBalboa]

Thanks so far guys.

In regards to the car, it is my own car.. not bought for or by a company. Does this mean I cannot claim for anything to do with my private vehicle that is used for business travel (except fuel)?

In regards to the LPG conversion, I have had this done as I expect to be travelling a lot more due to going contracting/LTD.. so this is with the business in mind, totally. Same for the car servicing, although, I guess one could argue the car needs to be serviced regardless. As these were invoiced to me directly and are now showing on my credit card statement, how do I arrange to 'put them through' as company expenses? (I only have a week or so to pay them off my credit card).

In regards to the mobile phone, it is currently in my name but from what you guys have said, I am better off ringing the phone co and getting it transferred to my LTD co. name once set-up.

[XLMonkey]

You can claim expenses that are business-related for a period of up to 6 months prior to incorporation of the company, though they do have to be business-related. So, things like buying a laptop would qualify. I'm not sure that an LPG conversion on your car really qualifies, though....

Mobile phones are one of the bigger benefits of running your own limited company. Yourco can pay for all mobile phone line rental and calls without incurring a taxable benefit in kind to you, provided that the phone contract is in the company's name. If you contact your phone company, they should be able to amend your bill to be in your company's name, rather than your own.

If the phone contract is in your name, then you can only claim work-related phone call charges, anything else will be treated as a taxable benefit.

[Hint, you can also also do the same thing for other officers/employees of the company if, for example, your partner is also the company secretary]

[TheFaQQer]

I was wondering if I can claim expenses which I have incurred just prior (couple of weeks) to going LTD but which will be used for business - things such as car servicing and LPG conversion. I originally paid for them via my credit card and/or cash.

Also, am I able to change my personal mobile phone to a business one - as I do/will be using it for business.

If the above is possible, how is it arranged?

You'll only be able to claim car expenses if the car is owned by the company, and you then pay company car tax on it.

You can claim for expenses occurred before you had your company - you may even be able to argue that you haven't got the receipts. For example, I bought some hardware ready for becoming a business, and registered some websites - I didn't keep the receipts, because I wasn't always intending for them to become business assets. Likewise, my office furniture I already had, and have transferred to the business - no receipt, but you should be able to justify the value that you are putting on them. Claiming £1000 for a poster in your office as decoration might be pushing it; £100 for a desk that you already had might not.

If your mobile phone is in the name of the company, then the company can pay for all calls and line rental. If it isn't, then the company can pay for business calls only. Talk to your phone provider to see what they can do - some will make it easy, some won't.

[chris79]

Hi

I was wondering if I can claim expenses which I have incurred just prior (couple of weeks) to going LTD but which will be used for business - things such as car servicing and LPG conversion. I originally paid for them via my credit card and/or cash.

Also, am I able to change my personal mobile phone to a business one - as I do/will be using it for business.

If the above is possible, how is it arranged?

Thanks.

I think you can, I purchased some business software before my company was setup and I've put this down, as long as you have the receipts you should be ok? (I would check with an accountant though to be 100% sure).

You can put mobile phone calls only down as an expense they need to be itemised on a bill, and I think it's the calls only you can claim, not line rental etc.

[RockyBalboa]

Hi

I was wondering if I can claim expenses which I have incurred just prior (couple of weeks) to going LTD but which will be used for business - things such as car servicing and LPG conversion. I originally paid for them via my credit card and/or cash.

Also, am I able to change my personal mobile phone to a business one - as I do/will be using it for business.

If the above is possible, how is it arranged?

Thanks.