Mobile phone and Tax

Qedis

Hi,

I am the sole director of a new limited company.

For tax purposes, I realise I should take out a new mobile phone contract in the company name, but business tariffs tend to be more pricey than consumer tariffs (I won't be VAT registered to start with).


I've seen a new 24month contract I like, but when I enquired, I was told I couldn't have it in the name of the company. If I took out the contract in my name, can I then transfer the ownership of the contract to the company? Will this then be treated (for tax purposes) the same as if the company provided me with the mobile phone in the first place?

Thanks
Qedis

AbbieCadabra

you can always ask but i doubt that the provider would transfer a contract, especially personal to business.

you can have a personal contract but it get's much more complicated on what you can & can't claim through the Ltd Co., your accountant would be able to advise further. HMRC guidance here.

Wywth

Qedis wrote: »

Hi,

I am the sole director of a new limited company.

For tax purposes, I realise I should take out a new mobile phone contract in the company name, but business tariffs tend to be more pricey than consumer tariffs (I won't be VAT registered to start with).


I've seen a new 24month contract I like, but when I enquired, I was told I couldn't have it in the name of the company. If I took out the contract in my name, can I then transfer the ownership of the contract to the company? Will this then be treated (for tax purposes) the same as if the company provided me with the mobile phone in the first place?

Thanks
Qedis

The supplier has already stated you cannot have the contract in the name of your company.

What does the contract say about assigning it to someone else? Most specifically prohibit this.

bordercars

why cant you just pay the bill via your business account.

fiscalfreckles

Have the phone contract in your name but claim it as an expense against the company.

longtimelurkersam

What the last two posters said.
I am in a similar position with my accommodation costs as i contract away from my home and therefore all my related costs are business expenses. I have them in my name as cannot easily get a rental agreement under limited company and i either pay direct from a limited account in the company name or out of one of my personal accounts after having transferred the money from the limited account to the personal account. Never had an issue in last 15 months.

paddyrg

I did just what you want to do - I have a personal mobile with three, but needed a dongle from T-Mobile for the company. You just need a good store manager who knows how to work their network's systems

phill99

fiscalfreckles wrote: »

Have the phone contract in your name but claim it as an expense against the company.

That's all you need to do.

This is common practice.