a little tax tip
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hints and tips
If you run a limited company, put your mobile phone contract into the company’s name
If you run your own limited company and reclaim the costs of a mobile against the business, you need to be careful. You are only allowed to reclaim the business use proportion of the bill, so you have to analyse it and discount the private element, including any VAT. However, if you transfer the contract with your operator to your company, the business is allowed to give you private use of the mobile without it or you incurring a tax liability.
There's a catch - a Blackberry (or similar personal digital assistant) is regarded as combining the functions of a mobile phone with those of a computer and therefore falls outside this exemption. It can only be treated as a mobile phone if the private use is not significant.
You are also limited in either case to one mobile phone per employee.
not sure how your business is doing?
We run bookkeeping for a number of clients either here at Inca or at the client's location. Our clients benefit from a clear understanding of the situation in their business, how much tax they have owing and how much they can draw as income. If this would help your business then please contact us for a chat, we'd be delighted to try to help.
