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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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.
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.
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.