Mobile phone and new company set up

Mobile phone and new company set up

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I know the company can provide an employee with a mobile phone and that is tax free. However this chap (electrician) has bought a phone and signed up to a contract in advance in his personal name but with the intention of it being for his new company.

As I understand it, it is only if the contract is in the company name that is is not taxable, and otherwise employees can only claim the actual business calls with an itemised bill as proof.

Assuming this to be the case, is the only way to get this tax free to convert the mobile contract into the company name? Will the phone company agree to that?

Also I know the company could provide his wife who will be employed as (legit) administrator, with a phone but presumably the same rules still apply? She has a pay as you go phone in her own name. Should the company just provide her with a new one and then be able to pay for everything? Or can it pay for her top up vouchers?

Also, I have another similar client but who is a sole trader. How does the situation differ for him and his wife (again legit administrator)?

Thank you
CF

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