If the mobile phone is in his name then he can put through business calls only.
No VAT reclaim.
If the business owned the mobile phone it would be a non taxable benefit even for private calls.
VAT would have been reclaimable
Very common that business owners do it completely wrong.
Van :
Generally the most cost effective approach to use of own vehicle is 45p per mile for the first 10k , 25p per mile thereafter. That would be total compensation for everything except parking and toll charges.
VAT is recalimable on the petrol element only against scale charges provided that you have sufficient fuel receipts to cover the VAT on the scale charges.
HTH,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I found this on the customs.gov.uk website... its a panel decision from Feb14, so not sure if it still stands.
Claiming input tax on business expenses billed to employees. Below are expenses usually billed to employees and not to the businesses, can the businesses claim the input tax and how?
a) Car park and other travelling expenses incurred while visiting customers or on working trips;
b) Mobile phone bill expenses for making business calls on a line registered in their own name;
c) Entertainment meals with existing customers;
d) Hotel accommodation while on outstation business trip;
i) A registered person claiming input tax must hold a valid document (tax invoice) under his name which is required to be provided under section 33 GSTA (Goods and Service Tax Act 2014) (refer section 33 GSTA and reg.38(1)(a)(i) GSTR).
ii) Invoice under employees name cannot be used for claiming input tax EXCEPT for mobile phone bill expenses used for business purpose.
iii) A registered person can use the mobile phone invoice billed to his employee for claiming input tax as long as the expenses are reimbursed and accounted as business expenses
-- Edited by FoxAccountancyServices on Wednesday 7th of October 2015 02:44:37 PM
