mobile phone - VAT

[Eirikur]

If a phone is £100 the VAT is not £20, but £16.67 You know how to calculate VAT right?

[konsultant]

Get a valid VAT invoice for the handset in the company name and you can reclaim the VAT. If the phone is for mixed personal/business use there's a limit of one phone per employee but you do not need to apportion the VAT for any personal use. No limits on the number of phones if they are just for business use but each one still needs to pass the wholly and exclusively test.

The phone itself can be offset against CT as a revenue expense or using capital allowances if you capitalise the handset (depending on the value and your company policy).

Perfect, thank you

[TheCyclingProgrammer]

Just be aware that depending on the cost of the phone your accountant may decide it is an fixed asset. This means the cost will be depreciated over 3 years.

I used to capitalise my handsets (new iPhones so value ranging from £400-600) but now don't bother, not on a 2 year upgrade cycle.

[TheCyclingProgrammer]

Yes VAT is applicable but for business contract the VAT can be offset against your output.

However my question was different

- If I can claim purchase of mobile as a business expense to get CT relief
- If I can reclaim VAT paid on the purchase in addition to the above

Thanks

Get a valid VAT invoice for the handset in the company name and you can reclaim the VAT. If the phone is for mixed personal/business use there's a limit of one phone per employee but you do not need to apportion the VAT for any personal use. No limits on the number of phones if they are just for business use but each one still needs to pass the wholly and exclusively test.

The phone itself can be offset against CT as a revenue expense or using capital allowances if you capitalise the handset (depending on the value and your company policy).

[MarillionFan]

I also found the Amazon tablets, Echo & Firestick I bought last night are legit business expenses as well. Cushty.

[SueEllen]

Just be aware that depending on the cost of the phone your accountant may decide it is an fixed asset. This means the cost will be depreciated over 3 years.

This is why I said talk to your accountant.

[konsultant]

Yes VAT is applicable but for business contract the VAT can be offset against your output.

However my question was different

- If I can claim purchase of mobile as a business expense to get CT relief
- If I can reclaim VAT paid on the purchase in addition to the above

Thanks

[scooterscot]

VAT is applicable to mobile phone usage? Don't see VAT charged (or MwSt) charged in Germany for mobile phones usage.

[konsultant]

Thanks you, yes that I was going too.

I wanted to just confirm I can also claim CT relief in addition to reclaiming VAT.

[SueEllen]

lol, yes I have.

Looking at some mobile deals now - late night shopping.

Appreciate if you can answer

You need to buy the phone in the business name.

[konsultant]

lol, yes I have.

Looking at some mobile deals now - late night shopping.

Appreciate if you can answer

[SueEllen]

Ask your accountant tomorrow morning.

You have an accountant right?

[konsultant]

Quick question please -

If I buy a phone outright can I reclaim the VAT? I am on standard VAT.

My understanding is yes. Can I then also claim the same amount for corporation tax relief ?

E.g. I buy a phone for £100, and offset VAT of £20.

Can I also then get £100 towards CT relief showing the purchase as a business expense?

Regards