smart phone for business

[cuk2012]

I am doing IT contract. As a part time task I would like to do android apps .. so thinking of buying some samsung smart phone, may be at 100 pound initial deposit and at 12 month contract ( or 18 month ) - all in LTD company business account.

But the problem is, in the current situation my contract may complete in another 3 months - so i will close my limited company if it happens. Finally what happens to the phone ? If i close the company do I have to sell the phone ( may be to myself ) and pay the money back to the company account before closing ? Can somebody please guide me what is the best thing to do in here ?

I do not want to buy the phone by paying the full cost which may be 300 to 400 GBP.. But If anything clicks in Android App am planning to do further in apps through my company if the contract does not end ( meaning any profit will be through my company .. ).

[northernladuk]

Get an accountant and some English lessons

[mudskipper]

It's a valid question. If you have a phone contract, and the company closes, what happens to the phone contract?

I don't think OP's English made the question unclear.

[Jessica@WhiteFieldTax]

It's a valid question. If you have a phone contract, and the company closes, what happens to the phone contract?

I don't think OP's English made the question unclear.

Notionally the phone company becomes a creditor for the full value of the minimum contract term, and should be paid as part of a liquidation or strike off.

In reality if you carry on the direct debit from private account, they are unlikely to worry.

Equally if you bump them on closing the company I'ld be surprised if they sought to take further action such as personal liability or seeking a administrative restoration.

[Wanderer]

in the current situation my contract may complete in another 3 months - so i will close my limited company if it happens. Finally what happens to the phone ? If i close the company do I have to sell the phone ( may be to myself ) and pay the money back to the company account before closing ? Can somebody please guide me what is the best thing to do in here?

I know you said you don't want to do this but tax wise, I think you are probably better off to buy the phone outright and claim back the full amount against you company profits.

If you only pay £100 deposit with the rest over 18 months then the company doesn't take as much of the cost on. A lot of people seem to like these deals where they get a "cheap" for "free" phone but it's probably cheaper and more flexible to buy the phone outright and get a sim-only contract.

When your company closes, they should probably sell the phone to you at the market value (say 50% of it's cost as new). If your software development business goes well then you may want to trade the phone for a different model and that's easier without a contract too.