Can I Claim My Phone as a Sole Trader? Quick Answer
Yes. Sole traders can claim allowable mobile phone costs used for their business – if you use the same phone for both business and personal purposes, you can normally claim only the business proportion of the cost.
HMRC gives the example of annual mobile bills totalling £200, with £70 relating to business calls. In that example, the allowable business expense is £70, so a separate business SIM or phone can make record-keeping easier because your work costs are easier to identify, although you do not need a separate phone simply to claim mobile expenses.
If you want a dedicated work number without buying another handset, compare business SIM-only plans .
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Key Takeaways
Sole traders can claim allowable phone and mobile costs relating to their business.
If your phone has both personal and business use, only the business proportion is normally allowable.
You should use a reasonable method to work out business usage and keep supporting records.
Phone and internet costs are separate from simplified home-working flat rates.
A dedicated business SIM can make costs easier to separate without requiring another handset.
The rules for limited companies and employees are different from the sole-trader rules on this page.
Keep bills, receipts and supporting calculations as part of your business records.
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Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: September 2026
Can a Sole Trader Claim Mobile Phone Costs? Yes. HMRC lists phone and mobile bills among the costs that self-employed people may be able to claim as allowable business expenses.
Allowable expenses reduce the profit on which you pay Income Tax.
However, you cannot claim personal spending simply because it appears on the same phone bill – so, if you use something for both business and personal reasons, HMRC says you can claim only the part relating to your business.
What Phone Costs Can a Sole Trader Claim?
Phone cost Can it potentially be claimed? Key point
Business mobile calls
Yes
Claim the allowable business cost
Monthly mobile tariff
Potentially
Mixed personal and business use must be separated reasonably
Business SIM-only plan
Potentially
Business use should be identifiable
Mobile data used for work
Yes
Only the business element where use is mixed
Roaming used for business
Potentially
Keep evidence that the cost relates to business travel or work
Phone handset
Potentially
Treatment can depend on business use and your accounting method
Personal mobile use
No
Personal expenditure is not an allowable business expense
If you are unsure how a handset purchase should be treated in your accounts, check the latest HMRC guidance or speak to your accountant.
How Do I Calculate the Business Use of My Phone? If your mobile is used for both work and personal purposes, use a reasonable method to determine the business proportion.
You could base this on:
business calls versus personal calls
business-related mobile data use
itemised bills
a representative period of usage
a separate work SIM or number
Example
Suppose your mobile bills total £600 for the year – after reviewing your usage, you reasonably determine that 60% relates to your sole-trader business and 40% is personal.
Calculation Amount
Total annual mobile cost
£600
Estimated business use
60%
Potential business expense
£360
Personal element
£240
The important point is that your method should be reasonable and supportable rather than an arbitrary percentage chosen at the end of the tax year.
HMRC Example of Mixed Mobile Use HMRC gives a simple example where annual mobile phone bills total £200.
Of that:
£130 relates to personal calls
£70 relates to business calls
The allowable expense is therefore £70 , rather than the full £200.
This illustrates the basic principle: claim the business cost, not the personal elemen t.
Can I Claim My Entire Phone Bill? You should not claim the full bill simply because you occasionally use the phone for work.
If there is genuine personal use, the personal element needs to be excluded. -a full business claim is easier to justify where the relevant cost genuinely relates entirely to your trade and there is no private element.
For many sole traders, this is one reason to consider using a separate business SIM .
Can I Claim a Separate Business SIM? A separate SIM can make it much easier to distinguish business communications from personal mobile use.
For example, you could keep:
your existing personal number
a second SIM or eSIM for customers and suppliers
separate billing for the work line
This does not necessarily mean you need two phones – many modern handsets allow a personal and business number to run on the same device using dual SIM or eSIM.
See our guide on whether you should have a separate phone for business for the pros and cons.
Can I Claim the Cost of a Phone Handset? A phone bought for your business may be an allowable business cost, but the accounting treatment can depend on how you keep your accounts and how the device is used.
HMRC says that equipment bought and kept for use in the business is generally treated differently depending on whether you use cash basis or traditional accounting, so if you use the handset partly for personal purposes, the private element must also be considered.
Because a handset can be a larger one-off purchase than a monthly SIM bill, check the correct treatment when preparing your accounts if you are unsure.
If you are considering getting a new handset through a business contract, see our guide to buying a phone on a business account .
Can I Claim Phone Costs if I Work From Home? Yes, allowable business phone costs can still be claimed when you work from home.
However, phone and internet expenses are not included within HMRC’s simplified home-working flat rates.
If you use simplified expenses for working from home, you can still separately calculate the business proportion of your telephone and internet bills using the actual cost.
Do Simplified Expenses Cover My Mobile Phone? No. HMRC’s simplified working-from-home flat rate does not include telephone or internet expenses.
You therefore need to calculate the relevant business proportion of those bills separately.
This distinction is useful for sole traders who work predominantly from home and might otherwise assume their mobile costs are already covered by the monthly flat rate.
What Records Should I Keep? Keep enough evidence to support both the cost and the business proportion you claim – useful records include:
monthly mobile bills
SIM contract invoices
handset purchase receipts
itemised call records where available
business travel or roaming evidence
your calculation of mixed business/personal use
records showing which number or SIM is used for business
You do not necessarily need to record every individual phone call forever, but you should be able to explain how you reached a reasonable business-use figure.
Is It Better to Have a Separate Business Phone? Not necessarily.
A separate handset gives you very clear separation between personal and business use, but it also costs more and means carrying another phone.
Setup Best for Record-keeping
One phone, one mixed-use number
Very small amounts of business use
Requires apportionment
One phone with personal + business SIM
Most sole traders wanting a separate work number
Usually easier to separate costs
Separate business phone
High call volumes or strict separation
Clearer business records
Virtual business number
Businesses needing a public work number without another SIM
Service costs can be identified separately
For many sole traders, a separate business SIM on an existing handset offers the best balance between cost and administrative simplicity.
Business SIM-Only vs Business Handset Contract
Option Best for Cost consideration
Business SIM-only
You already own a suitable phone
Usually lower monthly cost
Business handset contract
You need a new phone
Includes device cost
Dual SIM/eSIM
You want personal and business numbers on one phone
Avoids buying another handset
If your current device is still suitable, start with our business SIM-only comparison .
If you need both a new device and a tariff, compare business mobile plans .
Can I Claim Roaming and International Calls? Business-related roaming or international calling costs may form part of your allowable phone expenses where they are incurred for the business but you have to keep evidence showing the business reason for the cost, particularly for larger or unusual charges.
If you make frequent international calls or travel regularly, choosing a more appropriate mobile plan could also be cheaper than repeatedly paying out-of-bundle charges.
Can I Claim Repairs, Accessories and Other Phone Costs? Other phone-related costs may also be relevant where they are genuinely incurred for your business – some examples can include:
repairs to a business device
business-specific accessories
security or device-management services
business roaming add-ons
Mixed-use items should still be treated carefully where there is a personal element.
Sole Trader vs Limited Company Phone Rules The guidance on this page is aimed specifically at sole traders .
A limited company is legally separate from its owner, so employer-provided mobile phone rules are different – for example, HMRC says an employer can generally provide an employee with one mobile phone or SIM without reporting it as a taxable benefit where the employer provides it and the contract is between the employer and supplier.
If you operate through a limited company, do not automatically apply the sole-trader apportionment rules on this page to a company-provided mobile.
How to Make Phone Expenses Easier to Manage For simpler bookkeeping:
Use a dedicated business number where practical.
Keep mobile invoices electronically.
Record your business-use method.
Review your usage periodically rather than guessing at year-end.
Keep handset and SIM invoices with your accounting records.
Check business and personal costs before submitting your Self Assessment.
If your current mobile contract makes this difficult, consider whether a dedicated business SIM-only plan would make your expenses easier to identify.
Could Switching Business Mobile Plan Reduce Your Costs? If you are already using your mobile heavily for work, it is also worth checking whether your existing personal or business tariff still represents good value.
Compare:
monthly cost
mobile data
business call usage
roaming
contract length
SIM-only versus handset cost
coverage
Our small business mobile plan comparison explains the main options, while our business phone bill guide shows how to identify avoidable mobile costs.
Our Verdict Yes, sole traders can claim allowable mobile phone costs, but personal use cannot simply be treated as a business expense.
If the same phone is used for work and personal purposes, calculate a reasonable business proportion and keep records showing how you arrived at it.
A separate business phone is not compulsory. For many sole traders, using a separate business SIM or eSIM on an existing handset is a simpler and cheaper way to separate work communications and costs.
If you want to compare your options, start with business SIM-only plans , compare broader business mobile plans or see our guide to using a separate phone for business .
Frequently Asked Questions Can a sole trader claim a mobile phone as a business expense?
Yes. Sole traders can claim allowable mobile phone costs relating to their business. Where there is mixed personal and business use, only the business element should normally be claimed.
Can I claim my whole phone bill as a sole trader?
Only where the relevant cost genuinely relates entirely to the business. If there is personal use, you need to exclude the personal element.
How do I calculate business use of my mobile phone?
Use a reasonable method based on evidence such as itemised bills, business calls, data usage or a representative period. Keep a record explaining how you calculated the percentage.
Can I claim the cost of buying a phone?
A phone bought for business use may qualify as a business cost, but its treatment depends on factors including your accounting method and any personal use. Check HMRC guidance or ask your accountant if you are unsure.
Can I claim a business SIM-only contract?
Business-related SIM costs may be allowable. If the SIM also has personal use, consider the relevant private element when calculating your expense.
Can I claim phone expenses if I work from home?
Yes. Allowable business phone costs can be claimed separately. HMRC’s simplified working-from-home flat rate does not include telephone or internet costs.
Do I need to keep my phone bills?
You should keep suitable records supporting your business expenses, including mobile bills, invoices, receipts and the basis used to calculate mixed business and personal usage.
Do I need a separate business phone to claim the cost?
No. You can use one phone for personal and business purposes, but you need to separate the allowable business element of mixed costs.
Is a separate business SIM easier for tax records?
It can be. Using a dedicated business SIM or number may make it easier to distinguish work costs and communications from personal use.
Can I have a business SIM and personal SIM in the same phone?
Yes, many modern phones support dual SIM or eSIM. This can provide separate business and personal numbers without requiring two handsets.
Are the mobile phone tax rules the same for limited companies?
No. Limited companies and employer-provided phones are subject to different rules, so company owners should check the relevant HMRC guidance rather than relying only on sole-trader rules.
Compare Business Mobile Options If you use your phone regularly for work, a separate business number can make communication and cost tracking easier.
Compare business SIM-only plans , explore business mobile plans or see the best mobile plans for small businesses .
Free quotes • No obligation • Compare UK business mobile providers
Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
