mobile phone costs through ltd company

sandyb

Hello
Can the director of the limited company I work for put all of the cost of her mobile phone through the business?
What are the conditions?
any information would be most welcome
Sandy

anony123

This only is allowed if the mobile contract is between the company itself and the supplier.
Basically, for their own personal use, the company is able to claim the money back but it cannot be a lot of money. Eg. £30 is fine, but £300 is not. Then pretty much the company can claim the money back.

anony123

You need to
DR mobile expenses (as it increases)
DR VAT (as you are able to reclaim hence it is going down)
CR the drawings account

sandyb

thank you 😊
so if the contract is in the company name/vodafone and the MD uses it mainly (90%) for work we can put all costs through the business?

anony123

Yes; 90% is quite high. 10% personal use is very low if you actually think about it. Eg of an hour is 6 mins (10%) and 54 mins would be 90%.

sandyb

thanks for your help 👍