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mobile phone bill - portion for personal use?
Hi,
Is there a way to allocate a portion of my monthly mobile phone bill for personal use? Currently, my phone bill is paid by direct debit out of my business account and I'm worried that the tax man may take issue with me charging it all to my business. I do not have a landline in my office so it is my primary means of communication, but it is also my only phone. Any suggestions?
Is there a way to allocate a portion of my monthly mobile phone bill for personal use? Currently, my phone bill is paid by direct debit out of my business account and I'm worried that the tax man may take issue with me charging it all to my business. I do not have a landline in my office so it is my primary means of communication, but it is also my only phone. Any suggestions?
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Inappropriate?Are you in business as a sole trader or do you operate through a limited company? -
Inappropriate?I'm a sole trader, although my income is creeping up so I may switch soon.. -
Inappropriate?@Tekin,
It would be simple if you operated as a limited company because you wouldn't have to adjust for private use for a mobile phone! However, as a sole trader you do have to adjust for private use.
I'm always wary of making suggestions because I'm an accountant and I rely on journal entries to adjust the figures. The FAC team will no doubt have a simpler method!
Do a journal entry each month transferring the private part to drawings. Don't forget that you should restrict the VAT you reclaim by a similar %.
Good luck.
I’m never happier than when I'mtrying to make accountancy exciting
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Inappropriate?Thanks Stuart, that makes sense! If I did a single journal entry at year end that adjusted for the whole year, would that also do the trick?
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Inappropriate?Yes.
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Inappropriate?Awesome. Thanks for your help!
