Reply to: Mobile phone and IR35

[Lumiere]

I did some research recently and realised that going for a business tariff when you are a 1-2 man company does not make sense at all, e.g. atm I am paying £20 for O2 Simplicity and get 600 minutes + free internet. The nearest business tariff is circa £30 and no internet included.

£20 << (£30 + £7.50) - 21% (?)

Correct me if I am wrong ..

[dx4100]

Cheers for the feedback...

My accountant confirmed it is an allowable expense and IR35 has no effect on that.

[NotAllThere]

The 5% is not an expenses allowance. Do your homework.

Gross income less allowable expenses (which includes a mobile) gives the effective total income. PAYE and NICs are due on 95% of that balance.

I was clarifying the op's question. I couldn't care less about IR35 or stupid UK expenses rules.

[PhilAtBFCA]

Mobile Phones and IR35

I do not understand that at all - a PAYG sim is a PAYG sim, what is special to a business about it? I didn't see anything on the orange web site.

Besides, I was not asking where to get a SIM, I was asking if the rules for mobile phones being allowed as a business expense include PAYG phone or is it only monthly contract plans in the name of the business that count?

Thanks for the question, I did some research and updated our knowledgebase article about Mobile Phones accordingly. ( PAYG had not been written about before )

BTW, the simple answer is NO to PAYG whether you are a Limited Company or Umbrella Employee.

Phil

[malvolio]

If caught by IR35, does the mobile phone expense come out of the 5% of whatevers left after allowable expenses are deducted. Or is it an allowable expense?

The 5% is not an expenses allowance. Do your homework.

Gross income less allowable expenses (which includes a mobile) gives the effective total income. PAYE and NICs are due on 95% of that balance.

[MPwannadecentincome]

http://shop.orange.co.uk/shop/business/plans/paymsim

That, my good sir, is not a PAYG it is a pay monthly.

[FiveTimes]

I do not understand that at all - a PAYG sim is a PAYG sim, what is special to a business about it? I didn't see anything on the orange web site.

http://shop.orange.co.uk/shop/business/plans/paymsim

[NotAllThere]

If caught by IR35, does the mobile phone expense come out of the 5% of whatevers left after allowable expenses are deducted. Or is it an allowable expense?

[MPwannadecentincome]

Orange do a PAYG business sim card.

I do not understand that at all - a PAYG sim is a PAYG sim, what is special to a business about it? I didn't see anything on the orange web site.

Besides, I was not asking where to get a SIM, I was asking if the rules for mobile phones being allowed as a business expense include PAYG phone or is it only monthly contract plans in the name of the business that count?

[MPwannadecentincome]

Oh FFS. We've discussed this endless times. Use the search feature of the forum...

Oh FFS I searched, pages and pages of results, can't see the one about PAYG

[FiveTimes]

Does it have to be a contract, can PAYG count as a business phone?

Orange do a PAYG business sim card.

[swamp]

Oh FFS. We've discussed this endless times. Use the search feature of the forum...

[MPwannadecentincome]

Phones are irrelvent to IR35.

Your Ltd can supply you with a phone and provided it is on a business tariff in the company name you do not have to distinguish between business and personal calls, the company pays for the entire bill.

If you have the phone on a personal contract in your name you can only claim for the cost of business related calls, nor can you claim for the cost of the line rental.

Does it have to be a contract, can PAYG count as a business phone?

[dx4100]

Thanks for that.

[DaveB]

Phones are irrelvent to IR35.

Your Ltd can supply you with a phone and provided it is on a business tariff in the company name you do not have to distinguish between business and personal calls, the company pays for the entire bill.

If you have the phone on a personal contract in your name you can only claim for the cost of business related calls, nor can you claim for the cost of the line rental.