Company Mobile Phones for Personal Use!

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Shippwreck
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Company Mobile Phones for Personal Use!

Post: # 114640Post Shippwreck
Wed Jun 25, 2008 11:49 am

Hey,

There wasn't really a forum for this topic so its going here!

Anyway... I've been sorting out my end of year company expenses etc and have come unstuck when it comes to my mobile! All year i've been claiming the entire bill as a company expense as Directors are allowed 1 mobile for personal and business use... BUT... I didn't change the phone into the company name!

When the phone is in your personal name you can only claim those calls that are for business and only what they actually cost... therefore if they were within your free minutes... you can claim £0. So I now have to re-pay my company a good whack (think £35 call plan over a year :shock:)

However there is light from here on in... I have called my provider (Orange) and asked them to transfer the contract into my companies name. They credit checked the company, waived a £150 charge and all done... 5 min phone call... so what does this mean... WELL...

This means that (assuming you have your own company) you can get a mobile phone on a personal tariff, which are ALWAYS far better value than company tarrifs then transfer the contract to your company, most likely for free and then you have the best of both worlds!

Obviously this is all UK tax stuff... no idea about the peeps abroad!


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invisibl
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Post: # 114758Post invisibl
Thu Jun 26, 2008 12:14 am

Cant you fudge calls and offset your costs?

Like: I had to call XYZ as I was at work running late and needed to re arrange a meeting as I had to stay late.

Or

Claim those 'friens' that you have called as Clients/3rd party vendors etc etc.

or am I missing summat?

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Shippwreck
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Post: # 114792Post Shippwreck
Thu Jun 26, 2008 9:53 am

Well yes, I could fudge the records etc and there is an argument that says:

"F**k it, it'll only be found if i'm audited... and being a contractor, if i'm audited, mobile phone bills are the least of my worries" (think IR35 potentially)

But for me i've always tried to do things... right... if you know what I mean... (i'm the worrying type ;)) There's also a part of me that says, in terms of audits and IR35 enquiries, they seem to go after the "biggest" fish if you know what I mean, or the most obvious... now i'm by no means a big fish, but my expense - wage ratio isn't small, neither is my expense to company earnings ratio and i've been told by various sources that that is one way they may look to target investigations that are likely to be succesful... (note I said one way... obviously it is not the be all and end all...) and so if its negated even by a little bit... whats the harm.

Lastly (and I here this argument a lot from non contractors) there's the one that says:

"You IT contractor types earn far more than the average joe anyway so quit you moaning and suck it up"

Now although I don't fully agree as although we earn more there is job security worries and definite unemployment moments that can last months depending on the market regardless of skill set... ie NOW... there is some merit to it, and when I look at it with the view that actually, I pay the money back... 2 days pay MAX and then take it back out as a dividend next time I sort that and it actually only costs me 20% of the amount... I can see where they are coming from... but at the same time noone likes losing money...

I don't even know where this post has gone... I seem to have argued every side... balls... I guess really it boils down to the hassle of the whole thing of getting it wrong... pfftt bloody rules!
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