Business Mobile

[purple]

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I am ltd and my accountant has said I can't charge my business mobiles through the business. As would be hard to prove the phones are a business expense.
I do use it for business but also for personal use.

how do other people deal with mobiles.

[leec]

Same sort of thing here, i use my mobile for business and personal use but it's linked to my personal bank account as like you say it's hard to prove the calls

The office landline phone is in the company name but i make most work calls on that anyway

[Barry]

When my mobile bill was charged to my personal account I used to charge the business half its cost. Now I have it direct debited from my business account and the claim it all back as business even though the contract is with me personally.

As long as your not taking the p*ss then if you get an inspection I am sure they will understand that a mobile is crucial to the running of your business. - I hope anyway

Ta

[Christoph]

This is like the other thread about people trying to treat their car as a business expense.

If you are serious, get a business tariff from one of the major providers and have a separate mobile for your business use. Then it is 100% clear what is and is not personal calls. There is no way the taxman can doubt you then.

At the end of the day, if something is a legitimate business expense you can always charge through your business. The only "grey areas" come from "grey usage" if you catch my drift i.e. those less scrupulous people in the world that try to charge their cars and mobiles through their businesses when they don't even use them for work in the first place.

Remember, the thing that finally caught up with Al Capone was tax-evasion...

[purple]

I am on a business tariff in name of business etc, I think the solution is to get a personal mobile so all use on business mobile is 100% for the business.

[hrbs]

A company mobile phone is not a benefit in kind and therefore you would not be taxed on making personal calls on a company mobile. As a director you are an employee of the company.

Your accountant needs to read the HMRC manual at http://www.hmrc.gov.uk/manuals/eimanual/EIM21779.htm .
Previously there was no restriction on company mobiles provided to employees for personal use.

Briefly ... "In most circumstances the provision of one mobile 'phone to a director or employee for private use is exempt from charge. The exemption covers the phone itself, any line rental and the cost of private calls paid for by the employer on that phone. "

Get a business tariff in the company's name and paid from the company's bank account (T-mobile have some good ones depending on number of handsets. One of my clients has just signed up on a 2 year deal with 15 handsets, 5k mins, 400 txt for less than £400 per month + cashback!) and ask your supplier for cashback instead of a new handset if you are happy with your current one.

Keith

HRBS
Small Business Specialists

[purple]

So in short I can continue to pay for my business mobiles bills calls (all calls) and line rental ( my other director also has one) through the business and the cost against my corp tax.

I will be in touch with my accountant to see what they think.

[hrbs]

So in short I can continue to pay for my business mobiles bills calls (all calls) and line rental ( my other director also has one) through the business and the cost against my corp tax.

I will be in touch with my accountant to see what they think.

Yes - the bill needs to be in the company's name (otherwise you would be claiming the reimbursement of company calls made on your personal mobile - which is not the same thing).

Keith

HRBS
Small Business Specialists

[purple]

The phone is on a business contract and paid by the business but I am not sure I comply with this

Meaning of not significant use for private purposes http://www.hmrc.gov.uk/manuals/eimanual/EIM21613.htm

[hrbs]

The phone is on a business contract and paid by the business but I am not sure I comply with this

Meaning of not significant use for private purposes http://www.hmrc.gov.uk/manuals/eimanual/EIM21613.htm

This test is not relevant for business mobiles as the provision of a mobile for personal use is specifically referred to in the HMRC manual at http://www.hmrc.gov.uk/manuals/eimanual/EIM21779.htm .

ie "In most circumstances the provision of one mobile 'phone to a director or employee for private use is exempt from charge. The exemption covers the phone itself, any line rental and the cost of private calls paid for by the employer on that phone. "

Keith

HRBS
Small Business Specialists

[purple]

This test is not relevant for business mobiles as the provision of a mobile for personal use is specifically referred to in the HMRC manual at http://www.hmrc.gov.uk/manuals/eimanual/EIM21779.htm .

ie "In most circumstances the provision of one mobile 'phone to a director or employee for private use is exempt from charge. The exemption covers the phone itself, any line rental and the cost of private calls paid for by the employer on that phone. "

Keith

HRBS
Small Business Specialists

on same page ( http://www.hmrc.gov.uk/manuals/eimanual/EIM21779.htm)

It mentions.

Business use exemption
The restriction of the exemption in Section 319 to one mobile phone for private use, does not alter the treatment of mobile phones provided solely for business use, which continue to be exempt under Section 316 ITEPA 2003, as long as any private use is not significant (see EIM21613).

This is what got me thinking bout private use, you can see why I am no accountant and take what ever my accountant says