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Are business mobile phone contracts cheaper than personal contracts?

Many business owners are under the impression that allowing their employees to use their personal mobiles for work, is cheaper than providing them with dedicated business phones.

If employees are using their own phones, then it doesn’t cost the business anything.  Right?

Wrong.

In actual fact, there are many hidden costs and risks associated with employees using their personal phones for work purposes, and, more to the point, there are many benefits to businesses of taking out business phone contracts for their employees.

Business mobile phone contracts are cheaper than personal plans.

If you compare the cost of personal phone contracts with the cost of business phone contracts, you’ll immediately see the difference.

Suppose you’re getting an iPhone 15 on a personal plan. You’ll pay £41 upfront and £39 per month on a 36-month plan.

Now, buy exactly the same iPhone 15 on a business contract and the upfront cost reduces to £32.50, with a lower monthly cost of £33.25 for the same 36-month plan.

That’s the same iPhone 15 for £215 cheaper on a business contract.

 

So what’s the catch?

There isn’t one, and here’s why.

Network providers know that businesses need reliability and affordability when it comes to connectivity, and so they offer more attractive contracts exclusively to businesses in order to encourage loyalty to their network.

 In return, businesses more readily subscribe to their plans, and when their business expands, they sign additional business mobile phone contracts with that same network.  It’s a win-win relationship.

Speaking of reliable and affordable business phone contracts, check us out.

Business mobile phone expenses qualify for tax relief.

If employees are using personal phones for work purposes, businesses can only gain tax relief on a percentage of costs associated with that personal mobile.  And in order to do that there is a lot of paperwork and admin time spent calculating how many business calls have been made on personal phones.

However, businesses can deduct all the costs associated with business mobile phones from their taxable income, reducing the amount of corporation tax they will pay at the end of their financial year.

Business mobile phone bills also itemise VAT, making VAT returns easier, and offer a variety of data that can help businesses manage their call-related costs.

Business mobile phones offer device support as part of the contract.

Device support can include repairs and maintenance for any damaged or malfunctioning device or software. If a phone gets lost, stolen, or broken, businesses can fix or replace a business phone quicker than if it were a personal device, providing that the business has chosen to insure that device. And although insurance may sound like an extra cost, in the long run, it is the cheaper and more sensible option for businesses.

If employees use their own phones and encounter any issues, the costs to repair or replace those devices could be high; it is inevitable that there will be phone damage at some point.

If businesses expect their employees to bear the costs of fixing their phones themselves, there is no guarantee that these costs will be affordable or done in an acceptable time frame, which will undoubtedly have a financial impact on business.  

Businesses may, therefore, be forced to meet the repair costs themselves, and will consequently realise that it would have been cheaper to have taken out a business phone contract in the first place. 

Efficiency and productivity.

These sound like generic words, but boosting efficiency and productivity by even 1%, can lead to exponential growth.

With this in mind, business mobile phones offer more than just cost savings and support. Consider the time and money a business could save and earn by having its employees work more efficiently and productively with the right equipment.

Business mobile phones give businesses more control over the devices used, how they are used, and the applications and software installed. These handsets can make business communications unified and consistent across the organisation.

Less time will be wasted on incompatible systems, apps not syncing correctly, or lost work due to backup issues.

When you think about the costs of business mobile phones, you should also consider the potential losses in productivity and revenue that could result from using separate devices and tools.

Control, flexibility and ease.

Business mobile phones give businesses enough control to set up policies and restrictions on how the phones are used, what apps are allowed or blocked, and how data is stored and shared. This feature alone makes a massive impact on how businesses are managed.

Business devices make it easier to monitor and track usage and performance and identify any issues or opportunities for improvement.

And lastly, businesses enjoy more flexibility in choosing the best plans and deals for their business needs. Thanks to dedicated account managers who can quickly resolve any issues, businesses can also scale up or down their contracts, depending on their changing requirements, without going through a series of calls. 

Business phone contracts vs personal plans:

Business phone contracts undoubtedly provide more value and peace of mind in the long term for any business.  If you are a sole trader, your decision is even more straightforward; you will save money instantly by taking out a business contract. 

Give Your Business An Edge. 

For further queries email us at info@initiis.co.uk 

We’ll love to know you on a first-name basis. Visit our store or call us now. 

 

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