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Categories explained: Phones & Internet πŸ“² 🌐
Categories explained: Phones & Internet πŸ“² 🌐
Steven Anderson avatar
Written by Steven Anderson
Updated over a week ago

This includes any payments made for mobile, landline or broadband services that are used 100% of the time for the business. Check out Taxation to make sure you are claiming correctly and that the expense qualifies as complete business use.

What's included

Work mobile phone contract, business landline or broadband services.

What's not included

Personal phone contracts, any broadband services you use for personal consumption.

How is it taxed?

You must ensure your landline phone contract is only for business use. Tax tip is to separate your phone line for the business, which shows it is 100% for business use only. For mobile phones, provided the contract is between the company and the provider, you can claim all costs as an allowable expense. Please see below for some further info on how each items are taxed specifically.

Mobile phone contracts and landline: If your company pays your personal phone bill, you'll have to pay a 'benefit in kind' (BIK) charge in the total amount of the bill, and your company will pay National Insurance Contributions at 13.8%. If you claim for the business only calls made on the personal mobile this is an allowable deduction provided you can prove it was a business call. Remember you can also reclaim the VAT element of the business calls made on personal mobiles.

Broadband: If you work from home and use your residential broadband you're not allowed to claim if the broadband was already in place, unless you can clearly split the business from the personal element. It's generally easier to have two broadband lines to show one is 100% for business.

Tax tips

Make sure you report any provision for home phone or broadband connection services on your PSA/P11D.

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