Do I pay tax on a business mobile?

Do I pay tax on a business mobile?

If you are a small business owner supplying staff with mobile phones, and the contract is between you and a supplier, you can claim all related costs against tax. You can even do this if some of the calls made on the devices are personal calls.


Costs and tax

However, if the contract is between the company and you personally, you will be seen as receiving benefits and will need to pay tax. Therefore, it is advisable to arrange a contract between the company and the supplier. If you are a sole trader, you may be able to pay for a fraction of the business-related costs. If you have a second phone for personal use and a primary phone for business-only, you will be able to claim all costs against the business.


Multiple phones and landlines

Are you a limited company planning on supplying an employee with multiple phones? If so, the first phone will be tax-free. However, the second handset will be treated as an asset. If you use your landline phone within your home for business use, the cost of the business-related calls will be tax-deductible. However, you won’t be able to claim for things like line rental and personal calls. Landline phones in offices are fully tax-deductible if the bills are in the company’s name rather than the owners.


How we can help

At OneBell Business Mobiles, we can come to your assistance if you do wish to invest in the very latest smartphones for your business. We can help you create the ideal package for your specific business needs and are able to help you find the best tariff possible. Our dedicated account managers can support you throughout your contract and can provide you with in-depth advice on a host of relevant topics. Early upgrades are also available. Find out more by calling us on 0161 667 0655 or by sending an e-mail to