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mobile phone - VAT

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    mobile phone - VAT

    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

    #2
    Ask your accountant tomorrow morning.

    You have an accountant right?
    "You’re just a bad memory who doesn’t know when to go away" JR

    Comment


      #3
      lol, yes I have.

      Looking at some mobile deals now - late night shopping.

      Appreciate if you can answer

      Comment


        #4
        Originally posted by konsultant View Post
        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.
        "You’re just a bad memory who doesn’t know when to go away" JR

        Comment


          #5
          Thanks you, yes that I was going too.

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

          Comment


            #6
            VAT is applicable to mobile phone usage? Don't see VAT charged (or MwSt) charged in Germany for mobile phones usage.
            "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

            Comment


              #7
              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

              Comment


                #8
                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.
                "You’re just a bad memory who doesn’t know when to go away" JR

                Comment


                  #9
                  I also found the Amazon tablets, Echo & Firestick I bought last night are legit business expenses as well. Cushty.
                  What happens in General, stays in General.
                  You know what they say about assumptions!

                  Comment


                    #10
                    Originally posted by konsultant View Post
                    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).

                    Comment

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