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After some recent experiences. Slightly wordy preamble but bear with me.....
I am technically a sole trader even though my business employs 20 odd people. I have a business bank account which has previously paid for three business mobiles on Vodafone. The costs of this get put through my accounts etc.
All three are out of contract and I would quite like to upgrade the phones rather than going to a sim only deal. I’ve previously stuck with Vodafone for ease and because the coverage is good in our rural area.
I spent some time on the phone with Vodafone’s business team today and was offered an option to upgrade all three phones to iPhone 14 with more dats than we’ve had previously for basically the same cost. So far so good.
However, as we progressed to getting it all set up, I’m told that due to FSA rules, the contracts are now split into a sim only “airtime” deal and a separate interest free loan for the handsets.
That’s fine until I’m told that the handset component has to be paid from a personal rather than a business account since I’m a sole trader. It also involves a personal credit check and “affordability” questions. The business turns over enough that £150/ month ( that we are already paying ) is a negligible expense.
Paying from my personal household account is useless to me because it’s a business expense that needs to appear in my accounts before tax.
Apparently it’s due to changes in the FSA regulations in the last two years.
Has anyone else come up against this?
Is there a different network that will allow me to pay from a business account?
Obviously I could just buy the handsets up front but I’d rather not.
My MD uses a telecoms company for all landlines, broadband and mobiles. They are the 'supplier' and they are the ones who bill us. Best thing is you can actually speak to and email regular support team members. And more flexible than the big mobile companies.
These are who my MD uses...
https://www.midlandtelecom.co.uk/
You can pay from your personal bank account and put it through the "company". A sole trader can use a personal account as far as HMRC are concerned. Just add it to your self assessment and it'll come out of your pre-tax spending
As above as a sole trader it doesn't matter what type of account anything is paid out from it's just another receipt in the pot as far as HMRC are concerned.
£150/month? For how long?! Doubt that’s saving you any money. Just buy the phones outright thru the business and move onto the cheapest sim-only plan that does what you want.
Apparently it’s due to changes in the FSA regulations in the last two years.
Sounds dubious.
I suspect they're worried about companies going "bust" after just getting a load of £1000 phones on credit....
Have you thought about using a cloud based voip system. More professional I think but depends on the business.
Apparently it’s due to changes in the FSA regulations in the last two years.
sounds dubious
Particularly since the FSA was replaced by the FCA in 2013.
Unless they mean the Food Standards Agency?
Would make sense if the phones were Apples on an Orange contract.
We have just moved from direct with Vodafone to a reseller and contract with EE.
Across 32 mobiles we have save £400 a month(!), and are free to purchase any unlocked handset from wherever we like. Vodafone business only ever offered handsets at full cost. Both savings add up to a metric shed load of money.
EE do it as one bill. My OH's employer allows them to expense mobile contacts as they use then for work. They won't pay for handsets though so a similar tariff to the Vodafone one only the air time could be expensed. With the EE all in one bill the handset is covered.
As others have said, you're overthinking it - pay it from your personal account and claim it as an expense from the company account. Keep it all receipted/documented and you're sorted.
EDIT - and why the flip are you not a LtdCo, especially employing 20 people?