VAT - Mobile Phones

[Acquainted]

Hi

Have recently put my phones monthly direct debit on my companies card and was wandering if i could claim the VAT element back?

Have tried looking on the HMRC site but could not find nothing.

Phone is used for business purposes, as well as private..

[Mpg]

If your VAT registered then yes.


If not I'm in trouble as have been claiming my VAT back for a while

[KM-Tiger]

You need to make sure that the VAT invoice has the company name on it, not yours. It's this that matters more than the method of payment.

[Acquainted]

LOL - you never know, thought i would ask as anything personally used that is the businesses usually has some extra tax of some sort.

Thanks anyway, if anyone can adivise different then it would be most appreciated.

[yorkshirejames]

LOL - you never know, thought i would ask as anything personally used that is the businesses usually has some extra tax of some sort.

Thanks anyway, if anyone can adivise different then it would be most appreciated.

Depends entirely on how good your accountant is.

I assume the personal use is incidental? If so then you should be fine.

If personal use is genuinely 50% of the amount, then you need to look at splitting personal use out, and not claiming this VAT back.

[Derick Price]

As I understand it, if you have a personal contract you should claim this in (in full or in part if also used for personal calls) as an expense to the business. The business can then claim the VAT back. Not sure that the company should be directly paying a personal invoice.

If this is in your own name and being paid in full by company then this may well be seen as a benefit in kind and have to be registered on your P11D, therefor liable to tax.

Thats as I understand it anyhow, but an accountant may post a better view.

[Acquainted]

Thanks for that Derick,

Use of business mobile phones is totally exempt for Benefits in Kind, im pretty sure of that.

So i think i should be okay claiming it back - maybe need to speak to the provider to put it in my businesses name and not my own.

Regards

Shane

[3pic]

It's a small additional point and one that doesn't normally cause a problem, but as HMRC seem to be getting ever more desperate to find fault...

If invoice is in your personal name, then as Dereck has mentioned, submit it via an expense claim form into the company and there should be no problem.......but, mobile phone invoices are rarely issued as proper VAT invoices, indeed, many will state "This is not a VAT invoice" on them and HMRC will have a field day over this - even though we all know Vodphone is VAT registered!.

Try conmtactin your mobile provider and see if they will issue a VAT invoice - they usually think of excuses to avoid doing so, such as it is against the law or that you are on a personal contract and VAT invoices are required, etc so stick to your guns and insist....or switch the contract to the company name, but then this may be a breach of contract as many mobile contracts are not transferrable either....

[yorkshirejames]

Thanks for that Derick,

Use of business mobile phones is totally exempt for Benefits in Kind, im pretty sure of that.

Maybe so, but your question wasn't about that.

I answered your question about the likely VAT treatment of these personal calls - it is true that there _may_ be an income tax treatment together.

I say this with respect, however questions like this are a prime example of why a business should retain an accountant (preferably on a monthly/annually fixed fee basis) to answer quick questions like this for them, quickly and accurately.

[Acquainted]

yorkshire james, there is no need to get all defensive.

I no full well you answered my question about the likely VAT treatment of these personal calls, that is why when i replied talking about the use of business mobile phones is totally exempt - i was in fact replying to 'Derick Price'.

This sort of question is not a prime example of why a business should retain an accountant, this sort of question is a prime example of why I, and many others use this forum.

So just to reiterate, please do not feel hard done by, when my answer was directed at another user.