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.

Ask Edwards a Finance Question

Other Questions:

Cellular phone for business ?

I wonder if you can deduct a cell-phone bought just for business travel as a business expense? I was once told by my accountant that if I had another phone installed (I have two now) that only one could be used as a business expense. (I though...

I had a visit from our housing management regarding phone extensions. Many units in our housing complex do not have phone extensions upstairs, and plans are being made to install these extensions. One candidate is the traditional wiring, and th...

Does anyone know what the details are? I'm going to be in Halifax this Wednesday and will be checking out what's new at the Cantel store at Bayers Lake. The kids have the 2160 since they are going to school in Halifax. My wife and I each have...

We have been talking to some friends about life after bankruptcy. One of our friends swears he cannot get long distance phone service because of his bankruptcy. This occurred almost 6 years ago. I am not an expert on bankruptcies, but think ...

We will shortly be moving to a new office. We've so far made use of a fairly bog-standard ISDN PBX solution. For a number of reasons, we'd like to use only analogue lines at our new location. The requirements are: 6 separate incoming number...

Edwards Finance Menu

Ask a Question
About Us / Me
Contact Me
Privacy Policy

Sitemap

My Favorite Sites

PFBlog
Google Finance
Yahoo Finance
Motley Fool
Nveille's Financial Blog
AllFinanceMatters
Free Money Finance
2MillionBlog
The Terror Finance blog

Q&A Subjects