Expenses - Mobile Phone

[s2budd]

Mobile Phone

Just don't use your mobile. Let people ring you and you use email. Simple.

[vetran]

What does the contract say?

does it require you to have a mobile phone? if not bill the client, its extra.

Does the contract cover expenses in depth? If the use is excessive then discuss it with the client. Don't let it fester for too long otherwise it becomes accepted you are paying.

[Mustang]

Original question.....

Omen666 - went on the HMRC "Benefits and Expenses" workshop and can highly recommend it to help understand the mysteries. Send me a PM if you want more details. In summary, there is a better tax incentive if you shift the phone account into your co name. This is true of most "benefits". Your Co can pay the bill and claim that VAT back. If you pay it and reimburse yourself, not only is the VAT not reclaimable but you are being tax twice - you and the company.

Hope that helps.

[Mustang]

Hmmm......not sure what Churchill has got against people that run their own LTD's. It's surely not an easy option with all the extra work that needs to be done to keep it going. Coming up to my first year now and the "extra's" have taken me by surprise!!

[Mindomoo]

Who yanked your chain

So you DON'T have to run your own company...

I dont see what you problem is with people who do choose to run their own ltd.

what difference does it make to you? so why the negativity?

Live and let live

[Churchill]

No I'M NOT SENSITIVE!!! But I am also not a tax avoider - quite the reverse in fact, but there are good reasons for that.

To answer your question, it doesn't apply, because you are in effect an employee of the umbrella and so cannot be an employee of your client.

So you DON'T have to run your own company...

[malvolio]

Hey, it's been a bad week - and it's only 2 days old! You should hear me when I'm really annoyed...

[malvolio]

No I'M NOT SENSITIVE!!! But I am also not a tax avoider - quite the reverse in fact, but there are good reasons for that.

To answer your question, it doesn't apply, because you are in effect an employee of the umbrella and so cannot be an employee of your client.

[Churchill]

And some of us are required to have limited companies so that we can work free of the constraints of section S344C of the Finance Act. MyCo is emphatically not a tax avoidance device and if you study my published accounts you will see I pay myself a realistic salary rather above NMW.

If you don't understand the question, keep out of the discussion. And don't question my ethics when you know nothing about them.

I was not questioning your ethics - sensitive little plant aren't we?

How would working through an umbrella company be constrained through section S344C of the Finance Act.

[malvolio]

And some of us are required to have limited companies so that we can work free of the constraints of section S344C of the Finance Act. MyCo is emphatically not a tax avoidance device and if you study my published accounts you will see I pay myself a realistic salary rather above NMW.

If you don't understand the question, keep out of the discussion. And don't question my ethics when you know nothing about them.

[Churchill]

Good plan - straight into the arms of IR35...

Some of us are glorified temps, not "pseudo businesses" formed to avoid paying their fair share of National Insurance.

[malvolio]

Good plan - straight into the arms of IR35...

Better plan - get itemised bills and reclaim the cost of business calls and associated VAT. Or, put the mobile on your company; Hector will allow personal use of company phones without incurring BIK liabilities.

It's a legitimate business expense so claim it, although you may not be able to pass it on to the client depending on your contractual agreements on expenses - I can't but two of my team can, which is a little annoying!

[Churchill]

Working for client on their customers site.

Everyone is using mobiles so my costs have gone through the roof, especially with all the daily conf calls being 2.5hrs in total.

My mobile bill for last month was £200, do I take them as a business expense and not discuss with client? Over a 3-4 month period it is going to be a lot of cost.

Ask them to provide an office mobile that you will use purely for their business - I do.

[omen666]

Working for client on their customers site.

Everyone is using mobiles so my costs have gone through the roof, especially with all the daily conf calls being 2.5hrs in total.

My mobile bill for last month was £200, do I take them as a business expense and not discuss with client? Over a 3-4 month period it is going to be a lot of cost.