Do I Need a Separate Phone To Claim It As A Business Expense?

Lots of people use their personal mobile number when they start a business. While some companies will need a business phone, others will not. It largely depends on your needs, and it often seems like less hassle than taking out a separate contract or carrying around another device. If you are considering using your own phone as the business line though, just remember that this can affect how you claim expenses, the image you present, and even what happens as you grow.

Claiming business expenses for a mobile phone

If you use a phone as part of running your business, you may be able to claim the associated costs back as expenses. But! If you also use the same phone for personal reasons, you’ll have to be very careful to only claim for usage that’s to do with your business.

HMRC are very strict that any expenses you claim relate “wholly and exclusively” to the business. Make sure you separate out what’s what!

What happens if I have a phone through my own company?

This is where it gets a little more complicated. If your company pays for your mobile phone as a director or employee and you use it for personal calls, then your business might need to record this as a Benefit in Kind, and report it to HMRC. This means you’ll pay tax on the value of the benefit you receive, and your company will pay employer’s National Insurance on it. Unless…

If you have a mobile from your company under any of those circumstances, it won’t be classed as a Benefit in Kind, and you won’t need to report it to HMRC.

Changing your number later can have huge implications

If you have been using your personal mobile number for your business, changing your business’s contact details means you’ll have to update your company information, website information, and also let your customers know.

You’ll also have to hope your customers remember to save your new number, or you may find that you’re receiving calls on your personal line for years to come! If you grow, it can make things a little tricky if you need to transfer the call to another colleague.

Keep the office hours inside the office

One of the major downsides of using your personal phone as your business number is that you have no control over calls coming in. Whenever you answer the phone to a number you’ll have to be in ‘business mode’ from the get-go. You might not always be in the mood for it, and it can be difficult to navigate if it happens when you’re out and about.

Having a separate business phone allows you to switch off in your downtime, without losing contact from friends and family. Plus, when it’s the business phone that rings, you know which hat to put on. It will give you some time to prepare before you pick up the phone – especially if you suffer from phone anxiety.

Having a phone for staff to use

If you don’t have a dedicated phone line in your business, you might have to rely on your staff making calls from their personal devices. It’s not a great way to win hearts and minds, especially if it’s costing them money. Plus your clients might not appreciate having a range of numbers contacting them. You also won’t have any kind of control over phone calls if they are coming from personal numbers.

If you opt to use a virtual phone system for the office, you’ll be able to see a record of all calls being made and coming through. You’ll also be able to set extensions to the phone number to route calls to certain members of staff. This makes the whole process of communicating with clients and suppliers much more efficient and organised.

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