mobile phone contracts for ltd co. - credit problem

[2something]

I have a ltd company and need a mobile phone for work. Quick look at the tax rules and so far so good, as long as it's a company phone in the company name.

I then place an order with O2 and they turn it down for credit reasons. So I call Experian and they reckon it's might be because we only have one year of accounts showing a small loss, as that is pretty much all their is in the credit report.

Fair enough, but O2 is unwilling to let me pay for the contract up front or put down an additional deposit, which seems a bit inflexible.

If anyone has any ideas, they would be much appreciated. Unfortunately it needs to be O2 as it's an iPhone.

[Eric Mc]

Use a privately owned mobile phone and reimburse yourself from the company for the business useage of the phone from the company. In that way you will not be subject to any personal Income Tax and the company will be able to charge the reimbursed amounts paid to you as an expense in its profit and loss account.

The details of these reimbursed expenses will need to be declared on the annual P11d form in the usual way - but you won't be taxerd if you go about things the right way.

[2something]

Thanks Eric, I was hoping to avoid the accounting that would go with that, but it might be my only option.

[Eric Mc]

The Revenue have offered dispensations from completing P11ds to individual employers in the past. You MAY be able to obtain such a dispensation if you request one from your PAYE office.

[theboss]

May be worth trying another network - Voda gave me a contract as soon as I setup my limited company so there were no filed accounts any other history to go by.

[bigTee]

You would pass with Orange.

PM me if you want me to credit check you with Orange.

[2something]

Eric - that's good to know thanks, must admit I never knew that.

Neil - good to know that if we had no accounts we might be o.k !

bigTee - thanks for the offer, unfortunately we're interested in the iPhones, so a bit stuck with O2 for the moment.

[Deva Link]

theboss said:

May be worth trying another network - Voda gave me a contract as soon as I setup my limited company so there were no filed accounts any other history to go by.

Us too - and our bills were straight away £500/mth. Arranged it face to face in one of the Voda shops.

We've been trading 3 yrs and are profitable but one of the guys just switched to O2 to get an iPhone and they still wouldn't give us a business credit account.