Personal Mobile Phone Contract - Agreement between Director and Company

Personal Mobile Phone Contract - Agreement...

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Possibly a very daft question but I'm going to ask it anyway....

If I were to personally take out a mobile phone contract , rather than my Limited company taking it out in it's name, and if I were to then enter into an agreement between myself and my Limited company to supply mobile phone services at a cost of £xxx per month, much in the same way as entering a home office rent license agreement.

Does this navigate the potential tax / ni issues ?

From a personal perspective there is no profit as the income and cost net off....

I wasn't able to get anywhere near as good a deal through my business as I could personally so I had to take it out in my name....

thanks

RM

Replies (7)

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By Phil Rees
05th Nov 2013 12:04

Don't reclaim the VAT

The contract is not between your company and the phone company, so the VAT is not reclaimable in your company's returns.

 

Thanks (1)
By redman7
05th Nov 2013 12:09

ok thanks - I'm not worried about the VAT though as I'm on the FRS...

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By essex accountant
05th Nov 2013 13:36

name on invoice

My contract for my mobile is a personal contract, but it is registered to me at my office address and the invoices are sent to :

 

Mr XX

XXX Accountancy Ltd

47 High Street

XXX town

 

VAT is claimed (technically wrong) as my company name is in the address; If HMRC do an inspection and were to look at the invoice, they would think that it is a company bill.

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By Phil Rees
06th Nov 2013 13:37

(reports essex accountant under mlr rules)

 .

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By redman7
08th Nov 2013 06:06

other views

VAT aside, any other views on this? 

thanks

RM

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By ShirleyM
08th Nov 2013 07:42

I can't see a problem

Other than the VAT, as mentioned above, it is no different to a 'Use of home' agreement, provided it is documented properly, and if you have one of those, just expand it.

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By redman7
08th Nov 2013 11:22

thanks Shirley, I think you're right, it just seems like too simple a solution to a problem!

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