Reply to: New Phone Contract

[Peter Loew]

Great. I need a new phone, might as well get on a business tariff.

[TheFaQQer]

This has been done a number of times before.

If the contract is in the company name, on a business tariff, then each employee can have one mobile phone. The company will pay for all calls and line rental (personal and business) for the employee. Having the contract in your name, and putting the company name as line one of the address does not count - if the contract is in your name, then unlucky:

If the contract is not in the company name, you can claim back as expenses the business related phone calls that you made each month. You cannot claim back any line rental. You cannot claim back any of the free minutes (so if you get 100 free minutes, 90 are used on business and you then rack up 50 minutes on personal use - tough, the company cannot reimburse you, as there has been no business related expenditure).

HTH,

FaQQer

[Peter Loew]

Thanks for the info so far.

so....who do you think offers the best business tarifs taking into account service as well.

My wife is the company sec and wouldn't mind getting her a phone but have already heard that this is a big no no.

I heard the same thing. Vodafone have decent business tariffs but O2 have the best personal tariffs so far as I can see.

The consensus seems to be that you can get a personal tariff so long as it goes in your company name and address. If this is the case, which makes sense to me, then I would certainly avoid the business tariffs and go with a personal one.

[Cooperinliverp00l]

Thanks for the info so far.

so....who do you think offers the best business tarifs taking into account service as well.

My wife is the company sec and wouldn't mind getting her a phone but have already heard that this is a big no no.

[Zorba]

I only wanted them because they offered free calls between the 2 handsets.

I remember this deal. I believe the free calls even worked internationally too?

[Zorba]

Really? Do you have to go for a business contract or can the LTD pay for a standard personal contract too?

It's probably been answered, but you can go for either - they are just products targeted at different markets. For what it's worth, you tend to get better service on the business contracts but you tend to find more bargains on personal contracts. As long as the business is the one paying the bill i.e. it has the company name and address on it, you're ok.

You might be able to save a few pounds via QuidCo though. Also, thanks to swamp for finding the HMRC link above.

[BoredBloke]

A few years ago I tried to take out 2 mobiles with Orange for my wife and me through their business side. It was a nightmare and I gave up in the end. They wanted a purchase order - I told them I'm only a little 2 people company, but was told that without one I wouldn't get the phones. So I knocked one up in word. That didn't work because it didn't supply enough information, dispite it containing all the info which the guy on the phone told me to include. So I sent another, with more information. This time they told me that my company was not listed with companies house - dispite my company being very much listed and 100% up to date with everything and my account not listed with the bank! The person relaying this information could not put me through to the department making the decisions, so in the end I gave up. I only wanted them because they offered free calls between the 2 handsets.

[FarmerPalmer]

http://www.onecompare.com/best-mobile-phone-deals/

... thought this might help

[swamp]

Thanks Swamp,

But to clarify, if you have a business mobile phone registered to your LTD, you can claim the total monthly amount back, even though the majority of calls are personal? Seems like another grey area to me.

Your business mobile will be paid for by direct debit from the business account. You don't claim any money back, or any other hassle.

http://www.hmrc.gov.uk/employers/ebi...ephones-04.htm

"If you provide an employee with a mobile telephone and enter into a service agreement with the telephone company there is no liability for NICs or tax."

The rules were ammended last year so you can only supply one phone per employee -- not a problem for contractors unless you want to give your missus a phone too. It should be said that business tarrifs are not particuarly competetive, but since they are tax free they are still far cheaper. Also business telephone support tends to be excellent

[Sysman]

It's one of the only genuine tax breaks Gordon Brown has ever given us.

Have you forgotten how much swag he got from the telcos in the G3 auctions?

[Peter Loew]

No and no.

You must have a business contract with your company. You can reclaim back the cost of your business calls you made on your personal mobile, but not the proportion of pre-paid minutes which those calls probably fall in or line rental. In other words, f*sk all.

Forget your old calls and ask Vodafone to change your contract to a business one. They'll tear up your existing contract and give you a new one to sign for you company.

Company mobile is a no-brainer, and actually most contractors don't realise this or try to put their personal calls through the company.

Thanks Swamp,

But to clarify, if you have a business mobile phone registered to your LTD, you can claim the total monthly amount back, even though the majority of calls are personal? Seems like another grey area to me.

[swamp]

Im sure there must be some rules to follow and not all calls can be claimed. what if you make more personal calls than business calls can you still claim the lot.

i have just had my bill through from O2 for £114 as i used it whilst in thailand surely i could pass this off.

If you find these rules let me know!

I use my company phone all the time abroad and regularly run up £100+ monthly bills which the company seems happy to pay And there is no BIK on any of this

It's one of the only genuine tax breaks Gordon Brown has ever given us.

[swamp]

So my current contract is with Vodafone, and is addressed to my home address (company address).

Can I now simply claim the total cost of the bill each month as a business expense? And can I backdate this to March when I started up my LTD?

P

No and no.

You must have a business contract with your company. You can reclaim back the cost of your business calls you made on your personal mobile, but not the proportion of pre-paid minutes which those calls probably fall in or line rental. In other words, f*sk all.

Forget your old calls and ask Vodafone to change your contract to a business one. They'll tear up your existing contract and give you a new one to sign for you company.

Company mobile is a no-brainer, and actually most contractors don't realise this or try to put their personal calls through the company.

[Cooperinliverp00l]

Im sure there must be some rules to follow and not all calls can be claimed. what if you make more personal calls than business calls can you still claim the lot.

i have just had my bill through from O2 for £114 as i used it whilst in thailand surely i could pass this off.

[FiveTimes]

So my current contract is with Vodafone, and is addressed to my home address (company address).

Can I now simply claim the total cost of the bill each month as a business expense? And can I backdate this to March when I started up my LTD?

P

You can only back date it if you have the copies of the bills addressed to Bill&Fred Ltd.

Its not so much your home address being the same as company address, it has to be invoiced to Bill&Fred Ltd, 4 Privet Avenue, etc.

But as long as vodafone swtich you over from online billing to paper billing, then you can request copies from march