Reply to: Mobile Phone an Asset or Expense?

[Platypus]

If in the original scenario the phone is bought by the company, is it an asset or an expense?

At over £400, an asset

[ittony]

If in the original scenario the phone is bought by the company, is it an asset or an expense?

[Platypus]

so have we reached a conclusion yet?

The phone cost me £450 (Nokia 8600 Luna).

As its going to be used for both personal and business use can i claim a % of that as an expense?

£100 of that £450 as an expense seems fair seeing as that it will be used during work?

Personally, I'd claim the whole amount, effectively transferring the handset to the company as an asset, same as anything purchased "on expenses".

[EvilWeevil]

T-mobile, I just rang them up, faxed them a few details to confirm the company existed OK, and they did it the same day.

[ghl]

Transferred my phone from private to business ownership earlier this year with Vodafone (mid contract). Dead easy. They just emailed me a Transfer Of Ownership form - I filled it in, scanned it, emailed it back, confirmed done within a week. Jobs a good 'un.

[Vikinghead]

I had a similar experience with 3.

They said they could not transfer my account from consumer to business as their systems were unable to share information. They would not even consider letting me early terminate the consumer account, even knowing that I would be starting a new business account with them. Basically, I have to complete my contract and then move to business! Like that's going to happen now!

Oh, and they said I could not keep my number. We'll I could but I would have to move it to another network first and then move it back!

[jazzmonst]

I moved mobile to business account paid by company and sold the handset to the company at market value. I get extra services as part of the company account and can make unlimited personal calls, the whole transfer was done for free mid contract.

Hi Lewis,

Which network were you with when you did this as i am considering doing this with O2 but got the response from them that this wasn't possible!?

[Waldorf]

Seems to be a complicated way to expense a phone, why not just buy it through the company and as you already have the phone, sell the phone to the company and get the contract set up in the company name.

Complication is the stuff og civil servants!

[Gonzo]

so have we reached a conclusion yet?

The phone cost me £450 (Nokia 8600 Luna).

As its going to be used for both personal and business use can i claim a % of that as an expense?

£100 of that £450 as an expense seems fair seeing as that it will be used during work?

I am still not convinced about this but Jason is a professional, so who am I to argue. Do you have an accountant that you can ask?

I can't see how you would work out what proportion of the handset was for business use and what proportion of the handset was for personal use, as I would argue that you need the whole handset to make your personal calls so there is no additional cost for business use, but I don't know.

If your mobile contract is in the name of yourCo then yourCo could pay the entire bill and for the entire handset. It is a bit late for that now but I can't see why you couldn't get the contract transferred to your company and then "sell" the handset to your company.

Usual disclaimer, IANAA, there could be pitfalls to this approach that I don't know of, etc etc.

[Maxamus]

so have we reached a conclusion yet?

The phone cost me £450 (Nokia 8600 Luna).

As its going to be used for both personal and business use can i claim a % of that as an expense?

£100 of that £450 as an expense seems fair seeing as that it will be used during work?

[Jason D]

I should have been a little clearer, the OP is asking about expensing part of his personal handset to the company which I don't think he can do, there is no mention of this in the hmrc guidance.

Myself, the phone contract is in the company name and myCo provides the handset and pays the bill.

Ok, the previous rules have been changed in that you can now make a deduction for an identifiable part or portion of any expense which is wholly and exclusively for the purposes of trade

You can therefore claim an element of the handset cost and the line rental in addition to the cost of the business calls.

Obviously it is much easier and safer to have the 'phone in the company name in the first place.

www.golimited.biz

[Gonzo]

You are right provided the contract is in the company name, but the OP's original queston was could he expense part of his personal phone to the company? which I don't think he can.

He certainly can..

http://www.hmrc.gov.uk/employers/ebi...telephones.htm


www.golimited.biz

I should have been a little clearer, the OP is asking about expensing part of his personal handset to the company which I don't think he can do, there is no mention of this in the hmrc guidance.

Myself, the phone contract is in the company name and myCo provides the handset and pays the bill.

[Jason D]

You are right provided the contract is in the company name, but the OP's original queston was could he expense part of his personal phone to the company? which I don't think he can.

He certainly can..

http://www.hmrc.gov.uk/employers/ebi...telephones.htm


www.golimited.biz

[Gonzo]

I believe you're allowed to have 1 company mobile phone per person. So you can transfer the contract to the Ltd. Co. name, pay the bill through the Ltd. Co. bank account and it'll be considered as company expenses.

You are right provided the contract is in the company name, but the OP's original queston was could he expense part of his personal phone to the company? which I don't think he can.

[vhadiant]

Its your phone then not the company's so I don't think that you can claim anything other than the cost of business related calls.

I believe you're allowed to have 1 company mobile phone per person. So you can transfer the contract to the Ltd. Co. name, pay the bill through the Ltd. Co. bank account and it'll be considered as company expenses.