Companies can provide all directors and staff with one mobile phone (or SIM card) each and, as long as the contract is in the company’s name and there is some element of business use, the mobile phone can be used for both business and personal purposes without resulting in a taxable benefit in kind charge on the employee. The company can also claim the VAT back on the purchase price and ongoing monthly charges as well as deduct the expense against its profits.
If the mobile phone is in your name and you do not want to transfer the contract into the company’s name you can, if you pay for call separately, charge the company for the cost of the business calls (including the VAT element). Note though that if you have an all inclusive contract then you cannot recharge the company as there is no cost to you for business calls.
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