Finance Q&A

Business Phone Calls... ?

Edwards Finance > Phones

Q. I was wondering if a phone or mobile phone has to be in the company name in order to be able deduct business calls? If it's possible to deduct business calls made from a personal phone number, how should that be documented?

A. In the "good old days" before itemised billing companies with a large number of employees raising expenses agreed with the IR that deduction of 25% for personal calls was acceptable. However, one company I worked at with this system failed to tell all in accounts and one year the P11D was made up to show that the company paid all my phone bill and I got a bit of a shock on my tax coding - then took 3 years to sort out, because the local IR office do not check the agreement when they get the P11D's. Nowadays itemised billing is the norm so the employee can take a copy, delete all personal calls and include in their expenses as an item in the normal way. Remember that there is a VAT element in phone bills so this can be included in the claim and reclaimed on returns in the normal way.

 


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