Contract /no contract

diz79 · 20 April 2017 at 1:25PM

I've often talked with friends whether I'm doing th e right thing with my phone.

Currently I pay ee £40 a month I get unlimited everything including fee phone calls in Europe and 10gb data. I'm on a two year contract which ends soon.

I have an S6 in very good condition so no need to upgrade so maybe I just get a sim deal.

But Im self employed and run a small business so I claim most of the cost back anyway. So Doesent really matter plus this year I was thinking of trying to get insurance including in the price I already pay.

If I was not self employed I would definitely go down the sim only route I think though.

One other thing I thought do I get the new contract sell the new phone for a profit and keep the old one, would they still insure it?

Anyway if anyone can help I would appreciate it many thanks

Frozen_up_north · 20 April 2017 at 2:43PM

I guess most of us on here are not able to offset the cost of a contract phone against tax. I took early retirement 6 years ago. At the company I worked for it was commonplace to replace phones, with even a minor defect (typically the £8 battery needed changing), with a new contract phone. This extended the contract... seemed bonkers to me.

If your accountant is happy with you getting a new phone/contract every couple of years, at least you have little to bother about. A SIM only, keeping your existing phone could save about £20/month, although you would need to factor in a replacement phone or battery from time to time.

I guess most on here are looking for best value, which in most cases is the SIM only route. On EE at the moment there is a SIM only offer of 12GB, unlimited mins, EU use (which all contracts should include for free from 15th June), 12 month contract, £19.99/month inc vat. Offer ends 9th May.
http://shop.ee.co.uk/sim-only/pay-monthly-phones

mobilejunkie · 20 April 2017 at 5:06PM

The off-setting against tax is a red herring. The net cost may be lower than if you didn't, but not as low as that of a cheaper alternative contract or sim only + phone would be.

diz79 · 21 April 2017 at 9:48AM

Thanks guys, so if I was to buy a phone could I put the full value of that through my tax return and then get a cheaper sim deal?

The only other issue for me is insurance with EE you get another phoen the same day. My last insurance was with Barclays where I had to wait a month which is difficult when self employed and ony have a basic phone. My g/f was with bubble insurance but theyy were awful. SO regarding insurance contract seems better doesent it?

mobilejunkie · 21 April 2017 at 11:45AM

First question yes - if solely for buinsess use. Regarding phone insurance, I've never taken it out and never will. The most I could lose is the value of the phone since I immediately put locks on both the phone and the sim.

martinthebandit · 21 April 2017 at 11:48AM

The best, cheapest and most reliable insurance is to have enough money in the bank (or under the mattress) to buy another phone if needed

J_B · 21 April 2017 at 2:24PM

diz79 wrote: »

I'm on a two year contract which ends soon.

Erm, it doesn't 'end', it just reaches the end of it's minimum term, but carries on regardless unless you tell EE otherwise a month in advance.

diz79 wrote: »

But Im self employed and run a small business so I claim most of the cost back anyway.

Brilliant - who do you claim the cost back off when you are self employed?
Is the clue maybe in the word 'self'?

diz79 · 21 April 2017 at 3:27PM

J_B wrote: »

Erm, it doesn't 'end', it just reaches the end of it's minimum term, but carries on regardless unless you tell EE otherwise a month in advance.

Brilliant - who do you claim the cost back off when you are self employed?
Is the clue maybe in the word 'self'?

It actaully means you claim it as tax relief as it's needed for my work so you actually don't pay as much isn't that hard to figure out.

diz79 · 21 April 2017 at 3:28PM

Thanks guys, well my circumstances I think stay with ee as I don't really have £700 lying around and I can claim most of it back as tax relief. Maybe next time I will look at this.

J_B · 21 April 2017 at 10:22PM

diz79 wrote: »

It actaully means you claim it as tax relief as it's needed for my work so you actually don't pay as much isn't that hard to figure out.

I know what it means and how tax works but it still has to be paid for and although you can 'put it against your taxable income', you still have to pay for it to reduce your tax by a little.

Contract /no contract

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