The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Mobile Phone repairs
Post Info TOPIC: Mobile Phone repairs
Artois


Guru

Status: Offline
Posts: 1313
Date:
Mobile Phone repairs
Permalink  

 

Hi all,

I am just doing the end of year accounts for a Sole Trader and have a couple of payments for mobile phone repairs which add up to over £200, I allow a percentage of the phone bills for business use and was going to use the same for the repairs but started to think that would it make a difference as in where the damage/fault had occurred.

For example, if it happened at work should 100% of the cost be allowed or if outside of work then should it be disallowed completely, I know for the small amount of tax involved HMRC probably wouldn't even care but just wanted to see what other peoples thoughts on the matter are.

Cheers 



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink  

out of interest what kind of repairs?

If he had phone insurance, would they have been covered?

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink  

Oh and what is the avatar about Doug?



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink  

Hi Joanne Not asked her yet as I am still going through the accounts and will wait and ask any queries all in one go but will let you know what the repairs are for when I have. New avatar is just because I needed to get rid of the Xmas one and didnt have a clue what to have, so I thought ?

__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink  

Sorry for the above layout but on my phone

__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
VinceH


Expert

Status: Offline
Posts: 1811
Date:
Permalink  

Oh, so it's not the new running theme, then? ;)

__________________

Vince M Hudd - Soft Rock Software

(I only came here looking for fellow apiarists...)
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink  

VinceH wrote:

Oh, so it's not the new running theme, then? ;)

 

 Nice one Vince, welcome to the punctuation mark club biggrin

The mobile phone receipts are for two separate repairs one for a cracked screen and another for a faulty button, not sure if they would be covered by insurance if she had it.

I am inclined to include at the same business percentage as I do for the calls.



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Leger


Master Book-keeper

Status: Offline
Posts: 3904
Date:
Permalink  

Good question Doug. I'd be inclined to allow the same percentage as well.  The repairs make good the phone so it can continue to be used at the same ratio.



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink  

Leger wrote:

Good question Doug. I'd be inclined to allow the same percentage as well.  The repairs make good the phone so it can continue to be used at the same ratio.

 Thanks John



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink  

Thought at least one would be a screen!

Ooooo now Im going to disagree on the basis of repairs not being W&E.

Personal phone/asset, business calls identifiable business element so ok. Repairs cover BOTH private and business function, no separate identifiable cost/duality of purpose so disallow.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Leger


Master Book-keeper

Status: Offline
Posts: 3904
Date:
Permalink  

Hi Joanne

Throwing a spanner into the mix, most contracts nowadays are call bundles so there's no identifiable way of costing business calls, so how do you split the ratio?



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink  

Leger wrote:

Hi Joanne

Throwing a spanner into the mix, most contracts nowadays are call bundles so there's no identifiable way of costing business calls, so how do you split the ratio?

Hi John

Bundles come under 'duality', so you cannot identify the business costs, unless said bundles show you the full activity which I believe you can get from some providers.  otherwise I would suggest get two phoneS for s/e bods.

 



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink  

Cheshire wrote:

Thought at least one would be a screen!

Ooooo now Im going to disagree on the basis of repairs not being W&E.

Personal phone/asset, business calls identifiable business element so ok. Repairs cover BOTH private and business function, no separate identifiable cost/duality of purpose so disallow.

 Hi Joanne

My original thought was to disallow but not for the reasons you have stated, more to do with where the damage occurred but then came to the conclusion that if a % of the bill was being used for business expenses then it stands to reason that this same % should be used for the cost of repairs, I do see your point about being W&E but I think (maybe wrongly) that if a part of the bill is allowed then so should repairs at the same rate.

If as John said the phone contract is a bundle, would you not allow any of the costs (calls & repairs) unless a breakdown could be supplied? 



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Casu


Senior Member

Status: Offline
Posts: 359
Date:
Permalink  


If as John said the phone contract is a bundle, would you not allow any of the costs (calls & repairs) unless a breakdown could be supplied? 

I read something about duality and other expenses. Will see what I can find.



-- Edited by Casu on Monday 7th of January 2019 02:51:02 PM

__________________

Caron
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink  

Artois wrote:
Cheshire wrote:

Thought at least one would be a screen!

Ooooo now Im going to disagree on the basis of repairs not being W&E.

Personal phone/asset, business calls identifiable business element so ok. Repairs cover BOTH private and business function, no separate identifiable cost/duality of purpose so disallow.

 Hi Joanne

My original thought was to disallow but not for the reasons you have stated, more to do with where the damage occurred but then came to the conclusion that if a % of the bill was being used for business expenses then it stands to reason that this same % should be used for the cost of repairs, I do see your point about being W&E but I think (maybe wrongly) that if a part of the bill is allowed then so should repairs at the same rate.

If as John said the phone contract is a bundle, would you not allow any of the costs (calls & repairs) unless a breakdown could be supplied? 

 Hi Doug

Just on the latter for the minute - W&E/duality states not.   If you cannot determine the business related portion of the overall costs then how can you apply the rule to allow the business expense.

Unless of course you go down the log every call and use of the rest of the bundle route, keep your monitoring records as proof and then allocate a %.  But then would you not have to re-do the calculation every few months to satisfy HMRC (which would end up more than the tax you save therefore not worth bothering with?)

 



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Mobile Phone repairs
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About