Self-Assessment, Mobile/Data contract

[meredevelopment]

Hi, (I've tried to search for an answer here, this must have been asked before so if anyone wants to point me to a link or two please do)

I'm trying to work out how to account for my mobile tariff as a self-employed person.

I have a personal Vodafone contract with unlimited everything, and due to location/access, I currently use it 5 working days a week, all day, as my access point. It's also used for business calls. Numerous apps on it are used for work. I'm a Web Developer so it's also used for some mobile testing.

Outside of work, it's used for everything a smartphone is used for these days.

If I had to estimate the usage breakdown, I'd say it's used about 40% of the time for business. The contract is around £60 a month.

I believe that the conventional wisdom / guidance is: If a personal phone contact is used for work, only the cost of the actual work calls can be offset against tax. This doesn't apply for me, I have all data, minutes, texts etc bundled in the £60.

Any advice please?

 

[DWS]

I ask my sole trader clients to allocate a reasonable percentage of their phone bill for which is business use and allow this as an expense so I see no problems with what you propose

 

[Assistant Advice]

You are definitely on the right track as you have already identified your business usage at circa 40% of your contract. Just remember to keep a note on file of how you arrived at that figure in case you are asked for clarification.

HMRC have some guidelines that might be helpful. I can't post the full link but hopefully you can get it from this - gov . uk / hmrc-internal-manuals/business-income-manual/bim47820

 

[MyAccountantOnline]

Hi, (I've tried to search for an answer here, this must have been asked before so if anyone wants to point me to a link or two please do)

I'm trying to work out how to account for my mobile tariff as a self-employed person.

I have a personal Vodafone contract with unlimited everything, and due to location/access, I currently use it 5 working days a week, all day, as my access point. It's also used for business calls. Numerous apps on it are used for work. I'm a Web Developer so it's also used for some mobile testing.

Outside of work, it's used for everything a smartphone is used for these days.

If I had to estimate the usage breakdown, I'd say it's used about 40% of the time for business. The contract is around £60 a month.

I believe that the conventional wisdom / guidance is: If a personal phone contact is used for work, only the cost of the actual work calls can be offset against tax. This doesn't apply for me, I have all data, minutes, texts etc bundled in the £60.

Any advice please?

When you deduct the mobile charges from your income you have to disallow the amount which is for private use. It's not an exact science and in my experience as an accountant provided you make some adjustment and have a basis for that, just as you have done, I've never had a problem with HMRC.

You may find this link useful - Expenses if you're self-employed - GOV.UK (www.gov.uk)