Does Mobile Phone count as company contractor expense?

[SueEllen]

Are you aware of an example of an inspector failing someone based on that test?

If you do one thing dodgy they will look into other things and claim that things you have done perfectly correctly are done wrong causing you a much bigger headache.

[TheCyclingProgrammer]

Are you aware of an example of an inspector failing someone based on that test?

No, but that’s not the point is it?

Either you want to stick to the rules or you don’t and hope you get away with it (you probably will).

The rule is, the company has to be party to the contract and liable to pay the bill, not you personally. This is the whole point of the pecuniary liability principle - the benefit in kind is incurred by YourCo settling a director’s personal liability.

Adding YourCo to the billing adddress does nothing to shift the liability. If you think it will fool HMIT in the event of an inspection then knock yourself out but don’t pretend you’re complying with the rules by doing so.

[PerfectStorm]

Is that reason enough not to do something properly that's pretty black and white and fairly simple to sort once and for all?

Ah - contractor theory

[northernladuk]

Are you aware of an example of an inspector failing someone based on that test?

Is that reason enough not to do something properly that's pretty black and white and fairly simple to sort once and for all?

[PerfectStorm]

For the millionth time, even if you get this past the network, this is not the same thing as having a contract in the company name and would likely fall foul of BIK rules if YourCo is paying your mobile phone bill if you were unlucky enough to get inspected.

Unless it's a business contract, the contract is going to be in your name (i.e. you are personally liable for paying the bill, not YourCo). It's you who will be chased if the bill doesn't get paid, not YourCo. You *might* "get away" with just adding YourCo to the correspondence address, but it depends how thorough the tax inspector is.

Are you aware of an example of an inspector failing someone based on that test?

[TheCyclingProgrammer]

(hint: try to get your company name on the first line of your address if you can)

For the millionth time, even if you get this past the network, this is not the same thing as having a contract in the company name and would likely fall foul of BIK rules if YourCo is paying your mobile phone bill if you were unlucky enough to get inspected.

Unless it's a business contract, the contract is going to be in your name (i.e. you are personally liable for paying the bill, not YourCo). It's you who will be chased if the bill doesn't get paid, not YourCo. You *might* "get away" with just adding YourCo to the correspondence address, but it depends how thorough the tax inspector is.

[PhiltheGreek]

Make sure the phone and the SIM card it uses are purchased from the company account, preferably in the company name (hint: try to get your company name on the first line of your address if you can)

But don't move house, or you'll have to close down your company and open another one called after your new road.

[PerfectStorm]

Make sure the phone and the SIM card it uses are purchased from the company account, preferably in the company name (hint: try to get your company name on the first line of your address if you can)

[rocktronAMP]

Don't forget to add a bike, a big TV, a season ticket for Manchester United and an interest free loan for a BTL.

I'd take the season ticket for Manchester United, if I lived anywhere near the stadium of Old Trafford. Probably, it'd be cheap as chips with Jose' current form in man / team management

Yep point taken, because that was numbskull question to ask near midnight at near end of Summer. LOL

[TestMangler]

Don't forget to add a bike, a big TV, a season ticket for Manchester United and an interest free loan for a BTL.

[scooterscot]

If you use it to do business, then yes. Why on earth wouldn't be.

[MrButton]

Does Mobile Phone count as company contractor expense?

Have you tried to search the forum?

It’s been answered plenty of times so no need to go over it again.

HTH

Edit - bah too slow.

[northernladuk]

These have been done to death. Nearly every accountant has advice about phone and laptops on their Web pages.
It's covered to death already in these forums so you could search using the Google method.
Phones site:forums.contractoruk.com

It's covered in the links on the right.

You can just Google it. Tons of guides as this is very basic...

And then there is your accountant.

A bit of effort would have gotten you your answer.

[rocktronAMP]

Hi All

Does buying a new mobile phone outright count as a limited company expense?

I mean paying the full whack without a contract.

Can I claim for it against the LTD business? What happens if I get two mobile phones, does the tax man say "no, that's not allowed"

Also what about getting a laptop for your LTD business?