BIK avoidance on iPhone

[escapeUK]

Say that in six years' time. You'll save over a grand. That's £1000.

Not to mention the corporation tax savings.

Expenses arent really worth that much effort. The 10p per mile nonsense doesnt even pay for the diesel I bet. It may just do at 40%.

The important things are:-

Pay yourself in dividends. No more NI to pay. Saves me £13k a year from being in an umbrella.

VAT. Flat vat scheme, pays me £2400 a year just to charge vat. Makes the accountant pay for itself.

[SackmanandCo]

blackberrys & iphones are classed as computers not mobile phones, so you could have a mobile and a smartphone through the company

[northernladuk]

Say that in six years' time. You'll save over a grand. That's £1000.

Not to mention the corporation tax savings.

Which is true but again applying his logic he will have invoiced over £432,000 lol

[swamp]

I started asking such questions when I started contracting properly this year. Then I realised, I invoice over £6000 a month. What do I care about saving 20% or 40% on the cost of a phone contract that at most could be £35 a month, thats £14 a month tax saved at the most. Thats not even half an hour of my time.

Say that in six years' time. You'll save over a grand. That's £1000.

Not to mention the corporation tax savings.

[mudskipper]

I asked this a few weeks back. In the end decided to go for the HTC Desire as it's not specifically named. It's very nice

[escapeUK]

I started asking such questions when I started contracting properly this year. Then I realised, I invoice over £6000 a month. What do I care about saving 20% or 40% on the cost of a phone contract that at most could be £35 a month, thats £14 a month tax saved at the most. Thats not even half an hour of my time.

[SueEllen]

Is there a definition of incidental? Do I have to also have a personal phone to prove the myco phone is business use only?

You don't need to have a personal mobile phone, but you should have another personal phone in your house i.e. landline as all your calls aren't going to be business calls.

If you don't then buy a cheap PAYAG. You can get them from £5-£10

[Moscow Mule]

They are classed as a computer. As long as the computer is used for business, and any private use is incidental, there is no BIK.

The phone page points you to the Assests page, not the computer page (which is subtly different):

HM Revenue & Customs: Assets - made available to an employee

Is there a definition of incidental? Do I have to also have a personal phone to prove the myco phone is business use only?

[Clare@InTouch]

They are classed as a computer. As long as the computer is used for business, and any private use is incidental, there is no BIK.

"Business-use only
Definitions or restrictions
You provide an employee with a computer and both of the following conditions apply:

•your only reason for providing the computer is so the employee can use it for business purposes
•if the employee uses it privately as well, the private use isn’t significant
What to report, what to pay
You have:

•no reporting requirements
•no tax or NICs to pay"

HM Revenue & Customs: Computers loaned to an employee

[swamp]

The exact wording is:

"...the rules [concerning BIK exemption] don’t apply to a device such as an iPhone or BlackBerry – the range of functions these devices offer means that HM Revenue & Customs (HMRC) doesn’t consider them to be primarily mobile phones."

Quite ridiculous! Just don't get an iPhone or a BlackBerry for now. Get a Palm Pre or some other smartphone and chance it.

[northernladuk]

I am sure this is going to have to change very soon, both my current client and last client are now starting to dish iPhones out as company standard to some of the more senior staff instead of Blackberrys so HMRC is going to have to sit up and listen at some point.... or is that common sense so we are screwed?

[Moscow Mule]

'ello accountants.

Quick q for you -

Since the HMRC guidance on company phones specifically excludes iPhones from the "1 company mobile per person for free" rules, can myco buy and pay for a "sim only" plan which may or may not go into a (personally owned) iphone with no BIK incurred?

Is the only way I will ever find the answer to this to be investigated?