My company is VAT registered and has a large population of mobile phone users. What obligations does my company have in declaring personal use of these phones?
The obligation is that input tax claimed from your mobile bill must not include the VAT incurred by staff when making personal calls. The VAT guide says: “You cannot treat VAT incurred on purchases of goods and services as input tax unless you intend to use those goods or services for the purposes of your business”. Whatever happens, you must have a method which is agreeable to HMRC.
