|
Mobile Phone Vat & Tax Summary |
Summary Although the taxation of mobile phones can be confusing, they can still be a valuable asset to your business; and hopefully this article will make the process a little easier. Remember that the areas most likely to affect you are First Year Allowances (FYA) and vat, as well as National Insurance Contributions (NICs) and whether to record the costs as a benefit if the phones are owned and used by employees. Don’t forget that Class 1 NICs are not the same as Class 1A NICs. As with all taxation issues, you should always be completely certain of your requirements before you file your returns.
If you are unsure on any aspects you should check with the Inland Revenue or get advice from a taxation specialist or accountant.
If you are looking to purchase mobile phones for your business, you should look at doing so before April 2005, as the First Year Allowance benefits may not be carried over in the next budget.
Links
Visit the Inland Revenue website here.
An Inland Revenue guide to PAYE and NICs is available in PDF format here. If you cannot already view PDF files, you can download the viewing program (Adobe Acrobat Reader) here free.
For information on the possible uses of mobile phones for your business, visit our in-depth article here.
More information on taxation and legislation is available within the other articles in our Business Accounting Portal with specific information on vat available here. Article Index
|
