Can I claim my phone as an business expense

Can I claim my phone as a business expense?

With inflation and bank interest rates rising, it’s a good time to consider options that will support your business in the long run. 

There’s a misconception about business plans being expensive, but that’s not the case. A business contract gives you more flexibility and control over your company handsets. But can you claim a phone under a business contract?

Do you run a business and use your mobile phone for business purposes? if you nodded then yes, your phone can be claimed as a business expense.

To do so, sign up for a business contract with your network service provider. They will ask for key information regarding your business. Next, you choose a deal, and lastly, they’ll run a credit check. 

If you pass the credit check, you’re good to go. 

Can I claim my phone as a business expense?

How can I claim phones under business expenses?

Mobile phones registered under your company name allow you to claim them as a business expense. Now, there are several ways to do that, depending on what suits you well.

  1. Sign up for a business plan and purchase multiple or a single handset for work. (EVO plans) 
  2. Use different sims for work and personal use and claim the second sim as a business expense. (Sim-Only)

Using personal handsets for work purposes 

It is a common practice, and you can subscribe to business sim-only plans on personal phones. This becomes complicated when employees claim back business calls as they need to itemise them. 

Purchase new handsets under your business name. 

This benefits your business in the long term. Business plans like Vodafone Business offer many benefits, so you should look into that. Other than Vodafone, all major carriers have good business plans, including handsets. 

The best way is to run a coverage check, a service that we provide so that you can get the best network coverage in your town. Somerset being a county can have different network coverage speeds. Although Vodafone covers 99.7% of the UK, it’s still best to have a coverage check for your peace of mind.

Second Sims 

Don’t want new handsets for your business? then second sims are the right option for you. You can sign up for a sim registered under your company name or buy sims for all your employees under the same package. That way, all calls from that sim will be under business expense, ensuring smooth communication and a simpler way of reimbursing employees for business calls. 

How can I sign up for a business contract? 

For sole traders needing up to three lines,  you can visit one of our stores with your proof of ID, a UK bank card, and bank details to set up the direct debits. For a sole trader requiring four or more lines or for a limited company, there would be a few extra things that you would need:

  • Purchase order on letter headed paper, ensuring the business address is on it, including the company contact details. 
  •  If you are VAT registered, then you need your VAT number.
  • Details about the requirements of your business and the products you want to purchase.
  • Company bank statement or a utility bill for simple proof.
  • Lastly, your company registration number.

Claiming phones as a business expense for a sole trader

If you’re a sole trader, the account’s credit check and setting up would all be done in your business name. Although you will be financially responsible for that contract. Sole traders who are VAT registered can claim the VAT back, so that’s a good advantage of having your phone under a business name.

Claiming phones as a business expense for a limited company

Phones would be registered under the company’s name for limited companies, charity groups, and similar legal structures. In this case, the credit check would be performed on the business. When purchasing handsets through the business, this cost can be claimed as an allowable expense and offset against annual taxes.

Just like sole traders, limited companies can have business-only calls on personal phones and claim them back only if there is proof that the calls were for business purposes only. They can also reclaim VAT if they are VAT registered.

Businesses grow with great support, even if the support is handsets or the network you choose. 

Give Your Business An Edge.

It’s important to note that these plans are interest-free, and any savings in the bank that grows yearly can help you pay the same price in monthly intervals that you will give when buying the phone outright. Which may not be as affordable as it used to be. 

Interested in signing up for a business contract or want to know more? Visit us at our store or contact us at

Learn more about Vodafone business plans:

What is the difference between business and standard plans?

How does the Business plan’s feature work, and what are the benefits?

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Hamza Irfan

Hamza Irfan

Writes about tech, mobiles, and networks with passion, curiosity, and humor.

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