HMRC brought out new rulings in 2012 which has allowed a limited company to provide it’s staff / directors with one smartphone each. The phone can be used for both business and personal use without there being a taxable benefit, however the contract must be in the companies name.
It should not be a personal mobile phone contract even if it is used entirely for business use, otherwise you could attract a tax charge.
So where does that leave you if you already have a business phone but it is in your personal name?
Well you can actually get in touch with your mobile phone provider and ask them to transfer the contract to your limited company (I am assuming you are the owner / director of the limited company, if you are just an employee of the company you will clearly need to discuss this with the directors). Just be careful when transferring the contract that you understand the charges as sometimes the providers will try and charge more for a business tariff. The alternative is to take out a new business contract.
So having your mobile phone in your limited company can be a very tax efficient benefit, if done correctly.
It should not be a personal mobile phone contract even if it is used entirely for business use, otherwise you could attract a tax charge.
So where does that leave you if you already have a business phone but it is in your personal name?
Well you can actually get in touch with your mobile phone provider and ask them to transfer the contract to your limited company (I am assuming you are the owner / director of the limited company, if you are just an employee of the company you will clearly need to discuss this with the directors). Just be careful when transferring the contract that you understand the charges as sometimes the providers will try and charge more for a business tariff. The alternative is to take out a new business contract.
So having your mobile phone in your limited company can be a very tax efficient benefit, if done correctly.
If you do not have the mobile phone contract in the companies name you should only claim highlighted specific call charges that have been incurred on your personal mobile phone contract for business use.
If you don't want to get a contract in the name of your company you could instead just have your company buy you a handset and keep the monthly usage contract personal.
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