Ltd company paying personal phone bill

oz0707

I feel I am exposing myself to a bit of a trap here.

I have started to pay my phone bill from the company account. There's no disputing that 95% of calls are for work, however I seem to think this contract should be in the company name, not just have them pay it.

Does this matter or can it just be sorted on a return? For example, if the contract is in the company name and only 95% is business use then 5% is a benefit to me. With it being in my name the usage is still 95%/5%.

VAT is the other issue. I'll be claiming the VAT back.

Seanymph

see point 4.4

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000088&propertyType=document#P131_16095

oz0707

So doesn't appear to matter who's name the contract is in?

As long as I appropriate the usage correctly.

Aquamania

oz0707 wrote: »

So doesn't appear to matter who's name the contract is in?

As long as I appropriate the usage correctly.

I suggest you speak to HMRC or an accountant.

I'm sure your company should not be paying your telephone bill, and if it is, it would be a BiK that needs to be declared on your P11d
There's a specific box "Payments for use of home telephone"

You may then be able to claim the cost of calls used wholly & exclusively in the course of your business as legitimate personal expenses that you can claim tax relief on. But I don't think you can include the cost of line rental.

If you make that many calls, then just buy calling package that includes free calls. No tax relief, but probably cheaper in the long run than paying for calls (even with tax relief). Again, an accountant should be able to advise better

oz0707

It's a mobile phone for clarification. I shall ask a tax pro and report back

Aquamania

oz0707 wrote: »

It's a mobile phone for clarification. I shall ask a tax pro and report back

In which case, all explained here

http://www.hmrc.gov.uk/payerti/exb/a-z/t/telephones-mobile.htm#3