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Ltd Co mobile phone

Limited Company mobile phone provider

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Does a Limited Company have to have a mobile phone under the name of the Limited Company, ie. not in the name of an individual? I'm pretty sure its a yes, but cannot locate any legislation to confirm this. Thanks in advance.

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By Accountant A
29th Jul 2018 15:47

It's called contract law.

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By Accountant A
29th Jul 2018 15:47

Duplicate deleted

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By andy.partridge
29th Jul 2018 16:40

Does it have to in what sense?

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By Lkc77
29th Jul 2018 21:10

Sorry misunderstand the comment 'contract law'. To be more specific - my question is in terms of in the accounts do the phone bills have to be formally under the name of the Ltd Co in order to make them tax deductible?

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Replying to Lkc77:
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By Accountant A
29th Jul 2018 23:06

Lkc77 wrote:

Sorry misunderstand the comment 'contract law'. To be more specific - my question is in terms of in the accounts do the phone bills have to be formally under the name of the Ltd Co in order to make them tax deductible?

How can an individual's phone bill appear in the company's accounts? Do you mean the company is paying a phone contract taken out by an individual? That sounds like a taxable payment to the individual.

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By David Heaton
30th Jul 2018 12:55

The tax deduction for the company depends on whether the payment it makes is wholly and exclusively for the purposes of the trade, or management expenses if it's an investment company. Having a contract in the company's name will ordinarily give you a tax deduction for the contract payments. If the employee has the contract but the employer pays the bills, you should also get a CT deduction, but for employee payments instead of phone bills. The employee only gets the phone wholly tax-free if it's a company contract, but that doesn't affect deductibility for the company - it's either a business phone expense or a business employment expense.

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By Matrix
29th Jul 2018 23:42

That is correct, the employer can provide an employee with a phone and it is not a taxable benefit. If the contract is in the name of the employee then the employee can only claim the integral cost of business calls. Any excess paid would be a taxable benefit.

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