Most start-up businesses begin their enterprise using their everyday personal mobile phone contract to conduct their business operations. But when should you consider switching over to a business mobile tariff?
As your business grows, you may recruit for sales staff or employees who require their own mobile phone. While some employees are happy to use their personal phone for work, many do not wish to be contacted by customers when they’ve clocked off from work.
This is actually quite a serious consideration when evaluating the well-being of your team; while team members wishing not to inconvenience their employer may say they are fine using their personal phone, the interference of weekend emails and even the occasional client call or text after hours means they are unable to fully switch off.
With mental health and workplace stress responsible for a growing number of sickness absences at work, small gestures that say ‘we are thinking about your well-being’ will go a long way in retaining loyal staff.
Pool Unused Call Allowances
One of the great benefits of a Business Mobile compared to a Personal Mobile Contract is that minutes and allowances can be pooled across devices. So if your Business Development Manager is a heavy mobile user, but your Marketing Manager only uses their business mobile when they’re out of the office – those minutes can be spread across accounts.
Simplified Tax and VAT reclaim
When employees or directors use their personal mobile phone, there are different ways to account for the cost and some can incur Benefit in Kind (BIK) taxes for that member of staff.
Furthermore, if your member of staff expenses the cost of their personal mobile phone it is not possible for your business to reclaim the VAT as the contract is in the name of your employee, and they will not be a VAT registered entity to re-charge this to you. That’s an extra 20% cost that can mount up significantly when you have several employees!
Business contracts can be setup to include International minutes, which can be useful when trading with the rest of the world. When your employee recharges their call costs to the company on a personal mobile contract, these rates are likely to be unfavourable and very expensive.
Should your limited company cease trading, you will not be responsible for the life of that contract (unless a personal guarantee has been provided) compared to a personal mobile contract that you are personally responsible for.
It’s a fact that sometimes staff members move on, and when this happens it can be convoluted if they have been using their personal number of liaise with your customers.
When Garden leave is common for sales and business development employees when they leave an organisation, where they historically used their personal phone to manage their accounts this exposes the business to continued communication with your clients.
You should also consider what happens if your staff member is sick or takes an extended period of absence for maternity and are continued to be contacted by customers on their personal phone. When using a Business Mobile, this device would be handed back to the organisation for calls to be dealt with by an alternative member of staff.
BusinessComparison can access the very best Business Mobile Phone Contracts, whether you are looking for iPhone, Samsung, Huawei or something else. Contracts start from just £18.00 per month.