Mobile phone contract

[Edisoneb]

I use my personal phone quite a lot for my ltd company, business purposes, mainly data-wise which is unlimited so not really an issue. However, my phone is now about 8 years old and needs replacing before it dies completely and I have huge problems with passwords on apps etc.

What I’m wondering is there any benefit to myself to now get the contract out in the business name? This would be used for both personal and business use so would that be a problem, as most plans now are unlimited? Would it be VAT deductible and go as an expense?

 

[Scalloway]

If the contract is in the business name then you can put it through as a company expense. VAT can be reclaimed.

This assumes personal use is not too heavy.

 

[Edisoneb]

If the contract is in the business name then you can put it through as a company expense. VAT can be reclaimed.

This assumes personal use is not too heavy.

Thanks.

The majority of contracts now have unlimited minutes and texts anyway, would I still be expected to show an itemised call:message list? My business use is mainly data or done on Wi-fi

 

[Maxwell83]

I prefer for my company to purchase the handset offline for me to use (thus saving VAT and corporation tax on the cost), and I have a £10-15 per month SIM with unlimited use that I pay for myself - not enough to worry about putting through the company.

That way I can get whichever phone I want, whenever without waiting to upgrade. The old phones are the company's property so when I sell them the company gets a little cash back.

 

[MyAccountantOnline]

...

What I’m wondering is there any benefit to myself to now get the contract out in the business name? ...

This is another advantage https://www.gov.uk/expenses-and-benefits-mobile-phones/whats-exempt