Last updated: 14 October 2026
Can you claim phone and internet costs if you’re self-employed?
Yes, the business part. If you use your mobile phone and home broadband for both business and personal use, you can claim the proportion that relates to your business. If you have a separate phone or line used only for the business, you can claim all of it. You can’t use the simplified flat rate for working from home to cover phone and internet; they’re claimed separately, based on actual business use.
What you can claim
| Cost | How much you can claim |
| Separate business mobile contract | 100% |
| Personal mobile used partly for business | Business proportion of the bill |
| Home broadband used partly for business | Business proportion |
| Business-only broadband line | 100% |
| Line rental for a home landline | Business proportion |
| Buying a phone or laptop | Business share through capital allowances or cash basis |
Working out the business proportion
Choose a reasonable method and use it consistently:
- Itemised bills: count business calls or data
- Time-based: hours of business use compared with total use
- A sample month that represents a typical pattern
HMRC accepts a fair estimate if it’s reasonable and you can explain it.
Example
Jess, a self-employed graphic designer, works from home. Her broadband costs £40 a month and she estimates 60% business use from her working hours, so she claims £288 a year. Her mobile costs £30 a month; checking itemised bills, about 50% of use is for clients, so she claims £180. She also buys a new phone for £600, used 50% for business, and claims £300.
Simplified expenses for working from home
If you use the flat rate for working from home (£10 to £26 a month based on hours), it covers heat and light, but not phone and internet. You can claim business phone and broadband costs in addition.
Limited company directors
If your company provides a mobile phone contract in its name, it’s tax-free for you and deductible for the company. Home broadband in your name paid by the company is usually a taxable benefit, unless it’s needed for work and private use is insignificant.
Under the cash basis
Most sole traders now use the cash basis, so equipment such as phones is deducted when paid, rather than through capital allowances.
VAT
If you’re VAT-registered, you can reclaim VAT on the business share of phone and broadband bills.
Records to keep
- Your phone and broadband bills
- A note of how you worked out the business percentage
- Receipts for phones and devices
Common mistakes
- Claiming 100% of a family broadband package used mainly for streaming
- Using a different percentage each year without a reason
- Claiming phone and broadband on top of a flat rate that you think already covers them, or the other way round
Frequently asked questions
Can I claim my whole mobile bill?
Only if the phone is used only for business.
Can I claim apps and subscriptions?
Yes, if used for business.
Is there a fixed percentage HMRC accepts?
No, it must reflect your actual use.
What about a phone for my employee?
One phone per employee is a tax-free benefit.
Related: mobile phones for employees, the cost of books and working from home and CGT.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with allowable expenses for sole traders. See our sole trader accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
