Challenges: VAT & Tax Compliance

Compliance with VAT & Tax requirements on mobile phone usage is challenging. Many companies’ policies and practices can leave them with significant corporate liability.

Your challenge

You know that your staff may well use their work mobile to call home to say they’ll be late or ring a friend to meet up for lunch. Short calls but they soon add up, and it can be a big job to sit and go through all the calls for your organisation to try and match the numbers to personal declarations from previous bills.

VAT requirements allow you to claim VAT back for business calls, but not for personal use, which can leave you in a bit of a quandary about allocating calls appropriately and what to include on your VAT return and what not to.

For compliance with VAT requirements there is a need to accurately identify personal use so that it can be deducted from VAT reclaim and where personal use is banned, demonstrable auditing of this policy will have to be in place.

Since April 2006, tax legislation has meant that mobile users can be taxed as a benefit in kind for personal use on PDA’s and Blackberrys where personal use is deemed to be significant.

For compliance with Tax requirements, recovery of personal use for Blackberry and PDA users where it is deemed significant will be required to avoid any benefit in kind tax charge. Accurate mobile asset inventories will also be needed to identify the users that could be affected.

Our Solution

To enable compliance with these requirements, ttMobiles has solutions from one off Personal Usage Reports for VAT apportionment calculations to ongoing personal call recovery through our Wireless Expense Manager Service.

Get in touch on 0845 3713918 for a no obligation discussion on this issue and how it affects your business or read more about how Allen and Overy eased compliance through using our solutions.