Home Phone

Home Phone

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Can an employed sales agent claim the total cost of his home phone (less personal calls)? He has a mobile phone which is supplied by his company and a laptop. He does work from home when the need arises. He took on a tariff with the phone company so that 01 and 02 numbers were free. He has made several calls from home but because of the tariff he does not have any itemised business calls as such, but it does show personal mobile calls which were chargeable. Can he therefore claim just the rental charge which in effect covers the business calls? How would the revenue view this if he is also provided with a mobile phone? Hope this makes sense. I am just a humble bookkeeper, so be kind to me...............
FEDUP

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Teignmouth
By Paul Scholes
26th Aug 2008 11:03

Not worth trying
HMRC have made it clear in Tax Bulletin 79 (Oct 2005) that only itemised business calls are allowed and it really isn't worth trying to go for any rental or fixed tarrif cost.

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By alanlowrey.hotmail.co.uk
26th Aug 2008 10:19

Lucas -v- Cattell
The Revenue will usually cite the case of Lucas v Cattell in denying a claim for relief in respect of a home telephone rental. The logic behind that case was that, since payment of the rental made the phone available for p[rivate use, it was not wholly, exclusively and necessarily for business purposes.

Having said that, the case was decided long before any of the special tariffs - such as you refer to - existed. It might, therefore, be possible to persuade a reasonable inspector of taxes (if you can find one) to agree to allow a proportion of the rental based on an estimate of the business usage.

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By rhangus.
26th Aug 2008 00:43

If Its Reasonable
then claim it.
Then be prepared to argue the toss if need be.
There cannot be a definitive answer here so better to have tried than not. Remember no means maybe if you can argue with reasons for the decision.

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