Biggins

Can any Company owners clarify a few questions.

1) Am I right in believing that mobile phones provided by your employer are no longer classed as a benefit in kind?

2) Can you reclaim the VAT on the phone purchase and monthly bills?

3) Do you need to do anything to cover the making of private calls on the phone as well as business? I would never never exceed the FREE monthly call minutes/texts on the contract.

Cheers.

Diablo

Correct, they are no longer a benfit in kind. Previously the benefit was a blanket charge in relation to personal use - but this was abolished so no action need be taken re personal use.

Not sure about the vat (although I should know!) but I see no reason why the vat on bills and purchase would not be recoverable by the employer.

D

[Edited by Diablo - 1/8/2004 12:03:05 PM]

Dunk

iTrader: (1)

IIRC VAT is disallowable for the private calls only, (Co's normally go for a PSA to avoid heaps of analysis.)

D

Biggins

What is PSA?

I've already been out and bought a new mobile, Motorola V600 , which was bought with Company cheque. Also signed up DD agreement for monthly £30 contract to be collected from Company bank account.

I will claim VAT on £69.99 purchase & each month on the £30 all inclusive minutes contract.

Can't see Mr Taxman raising eyebrows at that. I use the mobile for 50% business calls 50% private.

Dunk

iTrader: (1)

Private Settlement Agreement, you agree with them that a 60/40 split is reasonable for business & private use. Therefore you claim the 60% of the vat for each bill, without having to analyse each bill individually to get an exact split.

D