Business / residential pnone / internet

carjon

Hi, I have a client who has just opened his second computer shop, he has had the phone and internet fitted through residential instead of Business just by pure mistake, does anybody know whether this would cause any problems with it as a business expense ?

Thanx

groundy

Yes - you con not claim line rental on a residential phone line and only part of calls - although depends on whether its ST, pship or Ltd

sjkr

Hi,

I would have thought if the phone and internet have been fitted in his shop, wholly and exclusively for the use of the business only, then it could all be claimed as a business expense regardless of the fact that it has accidentally been classed as a residential line.

Regards,

Julie

deanshepherd

Agreed. Your only issue is with the supplier who will probably want to charge more to a business than to a residential customer.

As far as tax is concerned it is a business line.

groundy

Not if it is a Limited company. VAT would not be reclaimable and HMRC would possibly consider as BIK

NeilH

Hi

If the supplier has set it up as a residential account, reclaiming VAT may be tricky as they may not issue a VAT invoice. However, providing the line is used solely for business there shouldnt be a problem - its just an admin issue at the supplier's "end". It's a bit like buying your stationery froms Tesco, alsong as its for business purposes (wholly/exculsively) it's deductable regardless of the fact it's from a consumer store.

Neil

carjon

Thank you all for confirming my belief, I sort of thought it would be OK as long as it's wholly exclusivelly and nescsaary to the business, but best get opinions of others before giving advice that your only 90% sure of.

Thanks again x