Mobile Phone Through Limited Company

[KennyG]

I have a newly-formed Ltd Co with myself as Consultant and my wife as Co Secretary.

Can I legitimately put the cost of mobile phones (initial costs, line rental and call charges) for both of us? Or are HMRC only likely to accept that as a business operating expense if it's done as a percentage of the overall mobile costs - if so what percentage is considered reasonable?

I assume the phone account would need to be in the Ltd Co name?

[Ardesco]

I have one through the company and as I spend the vast majority of my time on the phone to agents or for business reasons I see it as perfectly reasonable.

You should log all the personal calls you make and pay these back to your company to make sure it is not seen as a BIK.

[PAG]

Else keep yourself a pay as you go phone to avoid Benefit in Kind.

[malvolio]

Unless things have changed recently, I thought using company mobiles for personal calls was not seen as a BIK item.

[ASB]

Start here: http://www.hmrc.gov.uk/budget2006/bn30.htm

If the phone contract is in the company name there is generally no BIK on private use.

If the phone is your own you can only charge the company for calls.

If the phone is PAYG bought by the company explore the link in more detail.

[dmini]

Start here: http://www.hmrc.gov.uk/budget2006/bn30.htm

If the phone contract is in the company name there is generally no BIK on private use.

Absolutely
I posted this same question a week ago - checked with my accountant - there is CURRENTLY no BIK -
http://www.hmrc.gov.uk/manuals/eimanual/EIM21779.htm
This link says a company can pay the whole mobile cost, one mobile per employee, even if there are private calls on it. It even uses the words

From 6 April 2006 the exemption is limited to one mobile phone provided to each employee for private use

That should end the discussion. MyCo just bought a new phone for me & the hubby (who is also an employee)

[Nixon Williams]

The provision of one mobile phone is exempt from any tax charge. The exemption covers the telephone itself, any line rental and the cost of private calls paid by the employer on the telephone.

Notes:
•The number of phones provided for private use is restricted to one;
•Mobile phones provided to members of your family and household are excluded;
•To qualify, the contract must be in the name of the company and paid from the company bank account.
If you wish to claim for a personal mobile phone, then you can only claim for the business calls, you cannot claim for the rental cost or any private calls.

I hope this is clear!

Alan

[Back In Business]

I hope this is clear!

Nearly

So if I got a phone for the company secretary (my missus) and 99% of the calls/texts from it are to me (split between personal and business), what part will I need to pay tax on then (my phone is already paid for by MyCo)?

[Maxamus]

is it really worth putting the phone through the business?

I mean i have a contract phone from orange and get 800min free and unlimited texts and pay £35. I never use allof the 800min.

What real tangible benefit is there putting it through as a company expense?
All i will be saving in corp tax is a mere £6.65 which is £80 per year....hardly seems worth it.

[Back In Business]

is it really worth putting the phone through the business?

I mean i have a contract phone from orange and get 800min free and unlimited texts and pay £35. I never use allof the 800min.

What real tangible benefit is there putting it through as a company expense?
All i will be saving in corp tax is a mere £6.65 which is £80 per year....hardly seems worth it.

Are you really a contractor??

Maximising income from plan A means claiming every bastard thing.