Have I got this right? - Mobile Phone Question

[Craig@Clarity]

IIRC, an iPhone is classed as not being a phone by HMRC. Probably because they aren't very good at making calls.

Yep. i(can't)Phone's are PDA's in their guidance since they must interpret that the primary function of it is not for making calls.

[TheFaQQer]

I'm not sure the smartphone would come under the guidance of mobiles but more likely will come under the heading of PDA's

IIRC, an iPhone is classed as not being a phone by HMRC. Probably because they aren't very good at making calls.

[Craig@Clarity]

From my reading of the rules, it seems that it doesn't matter.

As long as the bills are in the company name, the company can provide an employee with a single phone which is used for mixed business and private use and any number of additional phones primarily for business use, ie where private use is not significant.

HM Revenue & Customs: Telephones - mobile
EIM21779 - Particular benefits: mobile telephones: exemption for 2006/07 onwards: details

I'm not sure the smartphone would come under the guidance of mobiles but more likely will come under the heading of PDA's

[TheFaQQer]

From my reading of the rules, it seems that it doesn't matter.

As long as the bills are in the company name, the company can provide an employee with a single phone which is used for mixed business and private use and any number of additional phones primarily for business use, ie where private use is not significant.

HM Revenue & Customs: Telephones - mobile
EIM21779 - Particular benefits: mobile telephones: exemption for 2006/07 onwards: details

But that's not what the OP is doing - for some reason, he's buying a smartphone from the company and then using his personal SIM in it.

If he just got a single phone for mixed business and personal, through the company, then that would be fine - and could then add any number of primarily business phones. The problem comes with wanting the company to buy you a phone which is not going to have any business element to it because you're using it for personal use only.

[Wanderer]

Sounds rather wholly and exclusively not for business use to me

From my reading of the rules, it seems that it doesn't matter.

As long as the bills are in the company name, the company can provide an employee with a single phone which is used for mixed business and private use and any number of additional phones primarily for business use, ie where private use is not significant.

HM Revenue & Customs: Telephones - mobile
EIM21779 - Particular benefits: mobile telephones: exemption for 2006/07 onwards: details

[escapeUK]

Because I will stick my personal SIM card in the business smartphone

Sounds rather wholly and exclusively not for business use to me

[UncleTalon]

Hmmm I've just negotiated my T-Mobile from aroud £50.00 per month (with "free" handset every year) to £10.00 per month inc Internet on my Android, unlimited Land Line calls and £172.00 of other calls and txts per month ... by keeping my handset.

So getting the "free" handset would have to be worth £480.00 per year to me.

The way I would do it is get a PAYG sim, a double sim carrier and switch between the two on the one phone.

[SimonMac]

Why do you need a smartphone thats going to be turned off 95% of the time? Why did you need to pay anything DD?

Just buy a PAYG sim and a PAYG phone.

Because I will stick my personal SIM card in the business smartphone

[Wanderer]

I need to get a phone to seperate my business and personal calls, basically i want a number i can give to agents then turn off when I'm on a gig.

Secondly when it comes to buying the handset, as I am looking at a smartphone, because I can justify that I have another phone contract which is for personal use I can deduct the full cost against profits that Corp Tax is calculated on?

OK, here's what I'd do:

1. Buy the new phone you want outright any pay for it on the company credit card so it becomes an allowable company expense.
2. Take out a contract in the company name (plenty of 30-day sim only plans out there) and port your personal number to that contract, this is now allowable as a business expense.
3. Get a second SIM card on the same company account with a new phone number, this is the one you use while you are job hunting - most operators allow several phones on their "small business" tariffs.

Make sure you aren't paying a premium because it's a "business" rather than "personal" account or else you will end up worse off than just having a personal contract and paying for it out of your own pocket!

A cheaper option may be to just get a pre-pay burner SIM for your old phone, stick £10 top up on it and dump it when you're done. That way you're not paying £15/month line rental for a phone you won't use for months at a time while you're working. If agents want to contact you then they can email you (presuming you don't use a burner email address too).

Good luck!

[escapeUK]

Why do you need a smartphone thats going to be turned off 95% of the time? Why did you need to pay anything DD?

Just buy a PAYG sim and a PAYG phone.

[Craig@Clarity]

If the SIM only contract is in the company name the expense is allowable and so is the purchase of the handset. What you've said makes sense

[SimonMac]

I need to get a phone to seperate my business and personal calls, basically i want a number i can give to agents then turn off when I'm on a gig. What I'd like to do is not be stuck into a long contract so I'd like a 30 day sim only type deal and then buy a unlocked sim free handset.

From what I've read as long as the contract is in the business name, and paid DD from the business back account I should be OK and then I can use this monthly subscription from my profits that Corp Tax is calculated on.

Secondly when it comes to buying the handset, as I am looking at a smartphone, because I can justify that I have another phone contract which is for personal use I can deduct the full cost against profits that Corp Tax is calculated on?