Business phone

[SueEllen]

thanks swap. what about the home phone?

I read somewhere, probably in one of those boring HMRC docs, that your expected to have a home phone line therefore you can only claim the cost of any business calls from the bills.

However if you install a second line in the company's name then you can pass the entire cost through your Ltd Co books.

BTW some business broadband providers bundle phone lines in with the broadband. So if you have to get business broadband because that's the only way you can get a decent connection and service, then you may as well get the phone line if it's in the bundle.

[tonibat]

thanks

thanks swap. what about the home phone?

[swamp]

Mobile phone on 18 month personal contract but only used for work. Employer used to pay it. Now going Ltd with 6 months left on contract. £25 all inclusive but rarely used. Can I claim any of that? If it has to be itemised how can you give a price to a call that was included in a monthly price?

No no no!

Your old employer may have paid your whole personal phone bill, but they/you were in the wrong.

If you have a mobile on a personal contract you can only claim the cost of individual business calls. This, of course, is pants because those business calls you made will almost certainly be covered by your inclusive minutes in your call package, so you cannot claim anything.

On the other hand if you move your personal contract to a business contract, which all the suppliers will readily agree to, then you can claim the whole lot. Doesn't matter if you spend your time phoning sex lines in China; your company picks up the whole bill and Hector can't touch you.

To summarise, either:

* Keep your personal phone and claim nothing.

* Phone your mobile provider and tell them you want to break your contract and sign up for their business service. They send you a form to fill and you return that with a headed letter from YouCo Ltd. Takes about a week and you also get a shiny new phone

[tonibat]

bundles

Hi guys,

Following on from this I have a couple of questions too if I may.

Mobile phone on 18 month personal contract but only used for work. Employer used to pay it. Now going Ltd with 6 months left on contract. £25 all inclusive but rarely used. Can I claim any of that? If it has to be itemised how can you give a price to a call that was included in a monthly price?

We alsi have a bundle on the home phone. Broadband and telephone (all free calls again) so it cannot be itemised. Line is seperate paid to BT. Again how can I calculate a cost to the company.

No private calls made on Mobile VERY few on home phone. (very unsociable people!) Is there anything at all we can claim?

thanks

[swamp]

The company mobile phone is one of the few real tax breaks we get. Doesn't matter if 99% of your calls are personal sex-chat lines; all mobile expenses are a business expense.

Of course it must be a business contract to YourCo Ltd. paid direct from your company account. These do cost slightly more, but you get *much* better support (i.e. the call centre might be in the UK!)

And before you ask:
-- no your misses/secretary/cat/dog/mum can't have one too, even if they do the books
-- no you can't just change your name on your billing address on your *personal* phone to "My Co Ltd. Flat 5..." and carry on using cheapo personal phone contract!

HTH

[denver2k]

As for an extra handset, I assume you can have one handset per employee. So if you want an extra handset for the Mrs but she isn't an employee, I'd be careful.

No, I just want one handset for myself. Im the only employee of the company so far and being single. So, thats me sorted.

Anyways, guys !! many thanks for nice detailed replies.

[DaveB]

Thanks for replies guys....

OK, Calls need to be business related??

How TaxMan gona check whether i used 600 minutes in monthly package to call
for business or my mates?

Do i also need to produce Bills and explain each call made ?

My Ltd Co. will take out this contract, and is there any issue with paying extra for handset e.t.c

If the contract is in *your co's* name then it all counts as a business expense and you dont have to worry about itemising calls. You're co is allowed to pay for personal calls if it is a company phone. Youi can take out any contract/phone package you want.

If the contract is in *your* name then you can only claim the cost of busniess calls and you do have to go through the bills and itemise them. On top of that you cannot pro-rata minutes from an inclusive bundle in this case.

[Platypus]

OK, Calls need to be business related??

How TaxMan gona check whether i used 600 minutes in monthly package to call
for business or my mates?

Do i also need to produce Bills and explain each call made ?

You said your Ltd will take out the contract, therefore (as DaveB said)
(1) No the calls don't need to be ALL business related
(2) The Tax Man won't check the bills
(3) The Bills should go into the company accounts. You don't need to explain each call made.

As for an extra handset, I assume you can have one handset per employee. So if you want an extra handset for the Mrs but she isn't an employee, I'd be careful. If she's employed to do small stuff like the accounts, company secretary, etc. and runs up large phone bills, I'd be careful about that too.

[denver2k]

Thanks for replies guys....

OK, Calls need to be business related??

How TaxMan gona check whether i used 600 minutes in monthly package to call
for business or my mates?

Do i also need to produce Bills and explain each call made ?

My Ltd Co. will take out this contract, and is there any issue with paying extra for handset e.t.c

[DaveB]

Yes if your Ltd Co. takes out the contract. Most of the Mobile operators will happily sign you up as a one man ltd.

If you do it in your own name then you can only claim the cost of busniess related calls.

[LisaContractorUmbrella]

Is it possible to get a contract mobile package and claim it as a business phone ?

Yes. If you use it to make business calls.

[denver2k]

Is it possible to get a contract mobile package and claim it as a business phone ?