Mobile phone confusion Benefits in kind company director

Discussion in 'Accounts & Finance' started by geoffb, Jun 8, 2019.

  1. geoffb

    geoffb UKBF Regular Free Member

    254 7
    Last financial year I bought myself and our other company director a new dual sim free - non contract mobile phone via the ltd company, We kept our own sims and pay a monthly amount for our own calls

    We are now using the phones constantly for work so are looking to take out a monthly sim only contract to cover calls and data

    Ive found some great rates on three, but I'm confused about the HMRC phone guidelines

    it states

    the company can now provide each employee with one mobile phone or SIM card without it being a benefit in kind. But – the phone contract must be in the name of the limited company.

    So the phone was bought last december via the ltd company
    I want to take a sim only contract out to cover our business calls and pay via the ltd company

    Is this allowed?
     
    Posted: Jun 8, 2019 By: geoffb Member since: Nov 6, 2008
    #1
  2. DWS

    DWS UKBF Contributor Free Member

    62 8
    As long as the contract is in the name of the Company then I would say it is fine
     
    Posted: Jun 8, 2019 By: DWS Member since: Oct 26, 2018
    #2
  3. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    12,613 2,343
    It's allowed, but, it will create a benefit in kind as you are taking out the contract not the company.

    To take advantage of the exemption the contract must be between the mobile service provider and the limited company.
     
    Posted: Jun 10, 2019 By: MyAccountantOnline Member since: Sep 24, 2008
    #3
  4. geoffb

    geoffb UKBF Regular Free Member

    254 7
    Yes that's what I said - "and pay via the ltd company" ie in the companies name
     
    Posted: Jun 10, 2019 By: geoffb Member since: Nov 6, 2008
    #4
  5. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    12,613 2,343
    But bear in mind it's not enough to pay via the company if you want to avoid a benefit in kind.

    It's really easy to get caught on this one the contract must be in the company name which for most means a higher business tariff.
     
    Posted: Jun 10, 2019 By: MyAccountantOnline Member since: Sep 24, 2008
    #5
  6. geoffb

    geoffb UKBF Regular Free Member

    254 7
    Thanks for that
     
    Posted: Jun 10, 2019 By: geoffb Member since: Nov 6, 2008
    #6
  7. TheCyclingProgrammer

    TheCyclingProgrammer UKBF Regular Free Member

    1,052 218
    A business tariff does not necessarily mean a higher cost. There are good business deals around. I pay £15/month (ex VAT) for my Virgin mobile SIM which is unlimited texts and minutes and 4GB data and I also got a £5/month discount on a business fibre connection too.
     
    Posted: Jun 10, 2019 By: TheCyclingProgrammer Member since: Jul 15, 2014
    #7
  8. dvddarren

    dvddarren UKBF Newcomer Free Member

    13 1
    Glad I read this. I didn't realise the contract had to be in the business name. Currently speaking to Three to switch over to a business tariff.
    Thanks for bringing this to my attention.
     
    Posted: Jun 12, 2019 By: dvddarren Member since: Jun 19, 2008
    #8