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Company director mobile phone upgrade every year?

Can a Ltd Company director who has a mobile phone provided by the company, change phone each year?

Didn't find your answer?

As the summary says... if the company provides the mobile phone as per the allowance of 1 mobile phone for a director, can this be swapped to a newer model each year? What happens with the old one? Does the company take it back from the director and then sell it or scrap it? How does this affect the company accounts?

Thanks!

Replies (21)

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ALISK
By atleastisoundknowledgable...
17th Dec 2021 08:33

Yes.
Yes.
Yes, whatever, probably, P&L

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By paul.benny
17th Dec 2021 09:20

When you say, director, I assume you mean yourself.

If phone is purchased by company, company continues to own phone when it provides you with a new one.
That means any proceeds from sale belong to company. And (if company is VAT-registered) don't forget to account for VAT

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Replying to paul.benny:
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By firestorm
17th Dec 2021 13:38

paul.benny wrote:

When you say, director, I assume you mean yourself.

If phone is purchased by company, company continues to own phone when it provides you with a new one.
That means any proceeds from sale belong to company. And (if company is VAT-registered) don't forget to account for VAT

Okay that makes sense. What should the company do with the old phone? Is it acceptable for the company to sell it on ebay or similar? My company has always dealt with everything electronically (including Starling bank) so not sure what I should do if the company sold the phone for cash, how would that cash enter the company bank account?

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Replying to firestorm:
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By SXGuy
17th Dec 2021 14:20

Seriously? Sell something for cash, the company now holds cash in hand.

Pay it in to the bank, its now a transfer from cash to bank. Its not difficult, just follow the money trail

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Replying to firestorm:
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By paul.benny
17th Dec 2021 14:19

You could eBay or sell to musicmagpie or the like.

If you sell for cash you should pay the cash into company bank account. Or keep the cash yourself and transfer the amount from your personal bank.

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By RetiredTax
17th Dec 2021 09:44

Query sent @ 03.23 five times!!
Bit early in the month to start the Xmas boozing!!

On the query, suggest you discuss this with the Co'y Acc't. He will explain it all.

Merry Xmas to one and all.

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Replying to RetiredTax:
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By firestorm
17th Dec 2021 13:39

RetiredTax wrote:

Query sent @ 03.23 five times!!
Bit early in the month to start the Xmas boozing!!

On the query, suggest you discuss this with the Co'y Acc't. He will explain it all.

Merry Xmas to one and all.

Apologies for the multiple posts, the site didn't respond when I hit submit and I hit it again and again and eventually it worked.

As for 3am, quite often I'm awake working at that time, it's the quietist time of the day at home!

Merry Christmas to you too.

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Replying to RetiredTax:
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By Leywood
17th Dec 2021 14:25

Haha, dont be daft, he hasnt got an Accountant, he is trying to do it himself and then comes on here to get free advice on how to do it.

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Replying to Leywood:
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By firestorm
17th Dec 2021 15:09

Leywood wrote:

Haha, dont be daft, he hasnt got an Accountant, he is trying to do it himself and then comes on here to get free advice on how to do it.

I actually do have an accountant, I just didn't want to bother them with too many small menial questions like this.

I did actually try searching a lot for this question about upgrading director mobile phone each year but didn't find any results so thought I'd post the question.

I'm not looking to pull a fast one or anything, I just didn't know if there were any rules because the guidance says "one mobile phone" so wasn't sure what happens when I need a new one.

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Replying to firestorm:
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By David Ex
17th Dec 2021 15:33

firestorm wrote:

I actually do have an accountant, I just didn't want to bother them with too many small menial questions like this.

**** me! Talk about taking the ****!

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Replying to David Ex:
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By firestorm
17th Dec 2021 15:42

David Ex wrote:

firestorm wrote:

I actually do have an accountant, I just didn't want to bother them with too many small menial questions like this.

**** me! Talk about taking the ****!

I honestly don't understand why you're so angry that I posted this question here. This is an accounting website, and this area of the website literally says "Any Answers - Ask a Question".

I did my research beforehand but couldn't find any answers.

Have I done something wrong?

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Replying to firestorm:
Stepurhan
By stepurhan
17th Dec 2021 16:36

firestorm wrote:
This is an accounting website, and this area of the website literally says "Any Answers - Ask a Question".


This is a website for accoutants, it is not an accounting website. Read the first line of the "About AccountingWEB" link at the bottom of every page.

But, that aside, why don't you want to bother your accountant with "small menial questions"? You are literally paying them to give you accounting and tax advice. More importantly, if they give you accounting and tax advice that is incorrect, then they are answerable to you for it.

The fact that you, a non-accountant, have been able to join and post proves that you don't have to be an accountant to post here. How do you propose to filter accurate advice from bad advice, when you have no idea of the ability of those giving it?

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Replying to firestorm:
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By Leywood
17th Dec 2021 16:38

This is an Accountants forum for Accountants. Not for Joe public to get free answers.

Looking on forums does not constitute appropriate research.

You should be asking your Accountant. That is what he/she is there for.

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By Wanderer
17th Dec 2021 10:08

Rare in small IT contractor companies that the mobile phone contract is actually in the company's name.
Give a copy of the contract to your accountant when you ask them about this.

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Routemaster image
By tom123
17th Dec 2021 10:06

Realistically, with heavy use, (such as by an MD) I would often expect to buy a new phone each year anyway.

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By D V Fields
17th Dec 2021 12:48

What happens with the old phone is up to the company that owns it. What ever they decide (scrap, sale or otherwise) then they should account for it accordingly, including any benefit in kind if appropriate.

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By Hugo Fair
17th Dec 2021 13:20

Given that only prior post from OP started "I'm an IT contractor running through a Ltd Company. I was travelling on business and had a drink spiked, and was pressured into purchasing.." - last night's repetitive posting is beginning to look like a repeat.

But to answer the unasked question:
Yes of course the company can 'upgrade' the mobile phone each year (I'd suggest via a bundled contract rather than outright purchase if the intention is to only retain for a year).
What can't happen is for the 'old' phone each time to simply 'disappear' off the books (before 're-appearing' as the personal possession say of director's spouse or child).

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Replying to Hugo Fair:
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By firestorm
17th Dec 2021 13:34

Hugo Fair wrote:

Given that only prior post from OP started "I'm an IT contractor running through a Ltd Company. I was travelling on business and had a drink spiked, and was pressured into purchasing.." - last night's repetitive posting is beginning to look like a repeat.

But to answer the unasked question:
Yes of course the company can 'upgrade' the mobile phone each year (I'd suggest via a bundled contract rather than outright purchase if the intention is to only retain for a year).
What can't happen is for the 'old' phone each time to simply 'disappear' off the books (before 're-appearing' as the personal possession say of director's spouse or child).

My apologies for multiple posts, I wasn't drinking, I just clicked submit and nothing happened, no errors or anything, so I clicked it again, and again, and then eventually it redirected me to the post.

Thanks for your answer.

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Replying to firestorm:
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By Hugo Fair
17th Dec 2021 16:03

No need for apologies - and I wasn't accusing you of being a serial toper ... just using a little light humour in the run-up to Christmas.
Hope the rest was useful (as others have said if it belongs to the company then the company has to retain it or dispose of it properly in accounting terms).
Back to the tongue-in-cheek ... maybe you could use your latest acquisition to phone your accountant and leave him your original question as a message (along with Best Wishes for Christmas of course)!

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RLI
By lionofludesch
17th Dec 2021 16:25

I hate changing my phone.

All that hassle transferring data from your old phone, then you find your new phone isn't all that much better than the one you had before. Plus all the menus are different and you can't find anything.

Once every ten years is plenty.

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
17th Dec 2021 16:56

Can we all calm down a bit, please?

Contrary to the suggestions in several comments we do not ban questions from non-accountants who may be seeking basic information or second opinions. Even if they post it several times.

If you feel they are asking for too much for free, then ignore the question rather than abusing the OP.

Remember, too, that every business person who comes on this site looking for advice is a potential client. Would you say the same things to someone you encountered in real life. Please always remember that this is intended to be a professional forum and behave appropriately.

Perhaps it's the onset of tax season, but in the interests of preserving the mood of the community we're closing comments on this thread.

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