New here a few questions if I may...

[Tomo1971]

Hi there,

Am just coming out of a scheme (yeah, add 2 and 2 together and you can work out which type) and just set up as a Ltd Co.

Company is formed, bank account currently been set up etc.

I have looked through the forums regarding expenses and seem to get conflicting/confusing info from here and other sources so just looking to clarify a couple of things please;

*Mobile phone: I have a mobile contract in my own name as a business connection with the network (£30 a month with VAT and insurance) for a Blackberry. Can any part of this be claimed against tax? I can probably get the account changed to Name trading as Company name if required on the bill. Is that needed?

*Early starts, late finishes: I work all over the UK on temporary sites (hardly ever more than 2 continuous days at any site and 70% of the time I stay away from home) normal working hours are 8 till 6. Sometimes I start before 6 to get to site, sometimes I dont get back home/to accomodation till after 8. Sometimes I am still on site after 8pm. Is anything claimable for this... or is it a case of food is allowed but with receipts?

*When I am away from home (in Scotland) if my sites are within reasonable travel off my parents house in the Midlands, I will stay there. He is 80, (if that helps for any tax implications). Anything I can claim for this? Otherwise I stay in B&B's, hotels or in summer this year I even camped in a tent!!

*I rent a lock up from the local authority, purely to store equipment in (cables, small tools, consumables etc) and I pay £18.33 a fortnight for this. Can this be claimed? (I pay on a payment card and get receipts from the machine)

*What food/drinks can be claimed during the day when from home? In so much as when staying away in accomodation, can drinks, food be claimed while travelling as well as lunch/dinner etc?


Some of what im asking comes from when I was under an umbrella a few years ago and you just ticked boxes for if you was away etc... (probably not right looking back).

Any help appreciated.

S.

[Craig@Clarity]

*Mobile phone: I have a mobile contract in my own name as a business connection with the network (£30 a month with VAT and insurance) for a Blackberry. Can any part of this be claimed against tax? I can probably get the account changed to Name trading as Company name if required on the bill. Is that needed?

You can claim for the business calls element of the bill if the contract is in your personal name if you don't want to incur any BIK. For the whole bill to be an allowable expense with no BIK, the contract should be in the company name.

*Early starts, late finishes: I work all over the UK on temporary sites (hardly ever more than 2 continuous days at any site and 70% of the time I stay away from home) normal working hours are 8 till 6. Sometimes I start before 6 to get to site, sometimes I dont get back home/to accomodation till after 8. Sometimes I am still on site after 8pm. Is anything claimable for this... or is it a case of food is allowed but with receipts?

You can claim for the obvious expenses such as travel and subsistence at the actual cost you incurred them.

*When I am away from home (in Scotland) if my sites are within reasonable travel off my parents house in the Midlands, I will stay there. He is 80, (if that helps for any tax implications). Anything I can claim for this? Otherwise I stay in B&B's, hotels or in summer this year I even camped in a tent!!

Friends and family rate no longer applies so you cannot claim for staying there. You can claim for B & B's etc.

*I rent a lock up from the local authority, purely to store equipment in (cables, small tools, consumables etc) and I pay £18.33 a fortnight for this. Can this be claimed? (I pay on a payment card and get receipts from the machine)

Yes. If it is wholly, exclusively and necessary for the purpose of the business then it is claimable.

*What food/drinks can be claimed during the day when from home? In so much as when staying away in accomodation, can drinks, food be claimed while travelling as well as lunch/dinner etc?

Lunches and meals can be claimed if working away from home. These are covered under personal incidental expenses (PIE).

[Tomo1971]

You can claim for the business calls element of the bill if the contract is in your personal name if you don't want to incur any BIK. For the whole bill to be an allowable expense with no BIK, the contract should be in the company name.

I spoke to my network, I can transfer the account to my business but would need a credit check and as its a new start up is likely to fail. I could however change it to 'Name operating as Company Name' on the invoice. Does this suffice?

You can claim for the obvious expenses such as travel and subsistence at the actual cost you incurred them.

The accountant I was going to use said that I can claim money for before 6am and after 8pm, no need for receipts, just note them down...I assume this is wrong?

Lunches and meals can be claimed if working away from home. These are covered under personal incidental expenses (PIE).

Any limits on this? May sound daft but have been known to get 3 or 4 Costa coffees on the way to site if its a fair distance.

Steve

[rmmc]

*Mobile phone: I have a mobile contract in my own name as a business connection with the network (£30 a month with VAT and insurance) for a Blackberry. Can any part of this be claimed against tax? I can probably get the account changed to Name trading as Company name if required on the bill. Is that needed?

You can not claim the proportion cost of the contract as the contract is between you and the mobile network.

However you claim any cost incurred for making business calls. What it means that if you use minutes from your plan for business calls, you can not claim the line rental. However, once you used up your allowance (minutes in a plan) then you can claim the cost of business related cost.

You can claim for the business calls element of the bill if the contract is in your personal name if you don't want to incur any BIK. For the whole bill to be an allowable expense with no BIK, the contract should be in the company name.

Not quite correct. You do not incurred BIK if you are using your personal phone for the business purpose. However, if business pays the supplier directly then BIK, plus, it attracts class 1 NI not class 1A. Or if business simple reimburse the full bill which is in employees name, then it should go through the paye and pay tax and ni accordingly.

However if the contract is between the company and mobile provider, then there is no BIK for incidental personal usage. As blackberry is computer, there will be bik on blackberry unless it is incidental personal usage.

[Craig@Clarity]

You do not incurred BIK if you are using your personal phone for the business purpose.

You do incur a BIK if the company is paying for your personal line rental i.e. if the contract is in your personal name.

As blackberry is computer, there will be bik on blackberry unless it is incidental personal usage.

Not quite correct. A blackberry in the eyes of HMRC is a PDA not a computer. See the following more up to date guidance http://www.hmrc.gov.uk/guidance/480_chapter22.pdf

[rmmc]

You do incur a BIK if the company is paying for your personal line rental i.e. if the contract is in your personal name.

Thats exactly I said in my post. so agree when the BIK incur.

Not quite correct. You do not incurred BIK if you are using your personal phone for the business purpose. However, if business pays the supplier directly then BIK, plus, it attracts class 1 NI not class 1A. Or if business simple reimburse the full bill which is in employees name, then it should go through the paye and pay tax and ni accordingly.

Not quite correct. A blackberry in the eyes of HMRC is a PDA not a computer. See the following more up to date guidance http://www.hmrc.gov.uk/guidance/480_chapter22.pdf

Well, this is from the link you provided. para 22.5
"A Personal Digital Assistant, such as a Blackberry, combines the functions of a mobile phone with many of the functions associated with a computer. Therefore a Blackberry is not a mobile phone for the purpose of the exemption in Section 316. But if a Black berry is provided to a an employee solely for business use, and any private use is not significant, it will be exempt under Section 316, in the same way as a mobile phone provide in the same circumstances.

However if the contract is between the company and mobile provider, then there is no BIK for incidental personal usage. As blackberry is computer, there will be bik on blackberry unless it is incidental personal usage.

I meant to say that is not treated as a mobile phone.