My client has given me some Orange mobile phone invoices but they are in his personal name, not his company. He is not VAT registered but can I still post his invoices onto Sage or should he just take a proportion?
I believe that strictly speaking the mobile phone needs to be in the limited company's own name, or there could be P11D issues come July time. If the company reimburses the director for the invoice, this could be classed as a benefit in kind and there may be Class 1A NIC due, depending on how the director uses the phone.
If the director only uses the phone for business use, then there will be no Class 1A NIC due, although it may still need to be included on the P11D. I would look at the HMRC website for more info on P11D's as it's quite a complex area.
In the accounts it's quite easy, you just include the whole amount of the invoice, and adjust for the private use on the tax comp.
