Reply to: Mobile phone under ltd Company..

[Clare@InTouch]

Ok so an iphone still isn't exempt in this instance as it is deemed a computer or does the term 'Blackberry' cover all devices like this? If iphone is a computer you can still claim it as such surely but would there be a problem having a laptop as well as a computer (iphone)?

Or is just better dropping iphones of expenses altogether to be safe until they finally recognise it?

It says "Personal Digital Assistant, such as a Blackberry" - I'd take this to include an iPhone.

[northernladuk]

Here's a more up to date link from HMRC http://www.hmrc.gov.uk/guidance/480.pdf

Under Chapter 22 page 55, a Blackberry is allowable and is exempt from a tax charge under the circumstance it is for business use.

Ok so an iphone still isn't exempt in this instance as it is deemed a computer or does the term 'Blackberry' cover all devices like this? If iphone is a computer you can still claim it as such surely but would there be a problem having a laptop as well as a computer (iphone)?

Or is just better dropping iphones of expenses altogether to be safe until they finally recognise it?

[Platypus]

Here's a more up to date link from HMRC http://www.hmrc.gov.uk/guidance/480.pdf

Under Chapter 22 page 55, a Blackberry is allowable and is exempt from a tax charge under the circumstance it is for business use.

Nice one, thanks!

[Craig@Clarity]

Beware: Blackberry, iPhone, etc. may not be allowable for tax,
Firms warned to avoid ‘smart phone’ tax

Last paragraphs of EIM21701 - Particular benefits: computers: partial exemption: what computer equipment falls within the exemption: years up to and including 2005/06 only

Here's a more up to date link from HMRC http://www.hmrc.gov.uk/guidance/480.pdf

Under Chapter 22 page 55, a Blackberry is allowable and is exempt from a tax charge under the circumstance it is for business use.

[Platypus]

The company can provide you with a mobile phone and a PDA (iPhone or Blackberry).

Beware: Blackberry, iPhone, etc. may not be allowable for tax,
Firms warned to avoid ‘smart phone’ tax

Last paragraphs of EIM21701 - Particular benefits: computers: partial exemption: what computer equipment falls within the exemption: years up to and including 2005/06 only

[BiggieBig]

Does the discount work out to be above 21% of the normal price? If not, you could consider the fact that your business could save 21% of its corp tax by putting your phone bill via your business (assuming it is allowable). But if you can get it through your business based on your current plan, then you will save an extra 21% of your business income.

Thanks for all your responses.

Yeah the discount is 50% so would be great to save on top of that as well. I will ring the mobile co and see how big a risk it is and decide based on that..

[pmeswani]

Yeah but me being sinister don't want to take he risk as I might have issue later even if they agree at present.

the discount is too good to lose.

Does the discount work out to be above 21% of the normal price? If not, you could consider the fact that your business could save 21% of its corp tax by putting your phone bill via your business (assuming it is allowable). But if you can get it through your business based on your current plan, then you will save an extra 21% of your business income.

[BiggieBig]

What you don't ask, you don't get. Have you actually asked the provider if it is possible to do what you are asking for?

Yeah but me being sinister don't want to take he risk as I might have issue later even if they agree at present.

the discount is too good to lose.

[pmeswani]

Problem with this is that I already have my Plan under the company name. So I guess if both plans are under the company name this may be an issue when we both want to move back to a personal price plan. As we may lose a single discount futher along the line...

What you don't ask, you don't get. Have you actually asked the provider if it is possible to do what you are asking for?

[BiggieBig]

You could ask your mobile provider if they could add a company name on the bills, and ask if there are any issues with doing this. They will probably ask for Incorporation documentation and VAT certificate, but if you are able to retain your plan, then there shouldn't be any issues.

Problem with this is that I already have my Plan under the company name. So I guess if both plans are under the company name this may be an issue when we both want to move back to a personal price plan. As we may lose a single discount futher along the line...

[pmeswani]

now the other issue I have is that we're both on Friends and Family discounts. So don't want to combine the bills as there may be issues getting our discount back when we go back to personal accounts.

So I will have one mobile under compnay name with discount appliend and 2nd one under my wifes name, which I can pay directly through co or as a reimbursement.

Anyone see any issues with this..

You could ask your mobile provider if they could add a company name on the bills, and ask if there are any issues with doing this. They will probably ask for Incorporation documentation and VAT certificate, but if you are able to retain your plan, then there shouldn't be any issues.

[Clare@InTouch]

now the other issue I have is that we're both on Friends and Family discounts. So don't want to combine the bills as there may be issues getting our discount back when we go back to personal accounts.

So I will have one mobile under compnay name with discount appliend and 2nd one under my wifes name, which I can pay directly through co or as a reimbursement.

Anyone see any issues with this..

Potentially - in order for the company to pay for it, it needs to be a company liability. Therefore it has to be in the company name. If the 'phone is in your wifes name then it's her liability, and the company paying it will create a benefit in kind.

Have a read through the link Cojak posted to see how HMRC treat it.

[BiggieBig]

now the other issue I have is that we're both on Friends and Family discounts. So don't want to combine the bills as there may be issues getting our discount back when we go back to personal accounts.

So I will have one mobile under compnay name with discount appliend and 2nd one under my wifes name, which I can pay directly through co or as a reimbursement.

Anyone see any issues with this..

[Clare@InTouch]

I have 2 Phones one for me one for the wife (co Secretary) on the same contract through 02, never had any query with this and it probably saves money as 02 to 02 are free rather than me ringing a different mobile/home phone that may have a cost.

Wife as a phone and i have an XDA

That's fine - one phone per employee.

[Support Monkey]

I have 2 Phones one for me one for the wife (co Secretary) on the same contract through 02, never had any query with this and it probably saves money as 02 to 02 are free rather than me ringing a different mobile/home phone that may have a cost.

Wife as a phone and i have an XDA