Mobile Phone

The cost of mobile phones used in the course of a business are eligible for tax relief by way of claiming the expense in order to reduce taxable profit. The expense must be claimed in the proportion of business use only as to the fixed monthly charge and call costs.

If the phone is purchased outright a claim can also be made for capital allowances according to the percentage use of business (see 'Capital Allowances'). For traders using the 'cash basis' method of accounting, the proportional cost of buying the phone can be included as an expense.

For employees, where a mobile phone is provided, or allowance paid, this is classed as a benefit in kind and subject to tax and National insurance (see 'Benefit in Kind').