Business / residential pnone / internet

carjon Registered Posts: 14 Regular contributor ⭐ 😼 ⭐
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 ?



  • groundy
    groundy Registered Posts: 495
    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
    sjkr MAAT, AAT Licensed Accountant Posts: 74 💫 🐯 💫

    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.


  • deanshepherd
    deanshepherd Registered Posts: 1,809
    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
    groundy Registered Posts: 495
    Not if it is a Limited company. VAT would not be reclaimable and HMRC would possibly consider as BIK
  • NeilH
    NeilH Registered Posts: 553

    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.

  • carjon
    carjon Registered Posts: 14 Regular contributor ⭐ 😼 ⭐
    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
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