Can Sole Traders Claim Phone and Internet in the UK?

Most sole traders in the UK can claim phone and internet costs as business expenses — but only the business portion.

If you use your phone or broadband for both personal and work purposes, you’ll need to split the cost based on usage.

Here’s exactly how it works and what you can claim.

Quick answer

Yes — in most cases, a sole trader can claim phone and internet costs in the UK, but only the part used for business.

HMRC’s rule is that an expense must be incurred wholly and exclusively for your business, so any personal use must be excluded.

The HMRC rule: “wholly and exclusively”

The key rule behind all sole trader expense claims is HMRC’s “wholly and exclusively” test.

This means you can only claim costs that are incurred entirely for business purposes.

For phone and internet, that usually works like this:

• If the cost is 100% for business, you can usually claim all of it
• If it is partly for personal use, you can only claim the business share
• If you cannot separate business and personal use, you risk overstating your claim

Many self-employed people use the same phone and broadband for both work and personal life, so they need to make a reasonable split.

If you want a broader overview, see our full list of sole trader expenses.

Can I claim phone bill as a sole trader in the UK?

Yes — but it depends on how the phone is used.

If you have a dedicated business phone

If you have a separate phone or contract used only for work, you can usually claim the full cost, including:

• Monthly contract charges
• Business call charges
• Data used for business
• A handset bought purely for work

This is the simplest setup.

If you use one phone for business and personal use

This is more common. In that case, you can claim only the business part of the bill.

For example:

• 60% business use
• 40% personal use

You claim 60% of the cost.

Can sole traders claim internet or broadband costs?

Yes — but again, only the business-use portion in most cases.

If you have business-only broadband

If you pay for a separate internet connection used only for business, you can usually claim the full amount.

If you use home broadband for work

If your broadband is shared with personal use, you must split the cost.

You should not claim the full bill if your household also uses it privately.

If you also work from home, read our guide to working from home expenses for sole traders.

How to calculate business-use percentage

HMRC does not require a perfect formula, but your method must be reasonable and consistent.

You can base your estimate on:

• Time spent using the service for work
• Number of business calls
• Data usage
• Overall proportion of use

Simple phone example

Your mobile bill is £40 per month.

• 70% business use
• 30% personal use

Claim:

• £40 × 70% = £28 per month

Simple internet example

Your broadband costs £30 per month.

• 50% business use

Claim:

• £30 × 50% = £15 per month

Example: splitting real costs

Mobile phone

A freelancer pays £45/month.

• 65% business use

Claim:

• £29.25 per month

Broadband

A sole trader pays £32/month.

• 40% business use

Claim:

• £12.80 per month

Short practical example

Sophie is a self-employed virtual assistant.

She pays:

• £35 phone
• £28 broadband

She estimates:

• 80% phone use
• 50% broadband

Claims:

• £28 phone
• £14 broadband

Total:

• £42/month
• £504/year

What you cannot claim

You cannot claim:

• Personal portions of phone or broadband
• Family usage
• Streaming or entertainment services
• Non-business costs
• Anything you cannot justify

Common mistakes to avoid

Claiming 100% without justification

If there is personal use, claiming the full amount is risky.

Unrealistic estimates

Your split should be reasonable and believable.

Not reviewing usage

Your business use may change — review occasionally.

Including non-business extras

Do not include irrelevant costs.

Poor records

Keep basic evidence of how you calculated your percentage.

Record-keeping tips

Keep:

• Bills
• Notes on your calculations
• Supporting records
• Updates to your estimates

If you want a simple way to stay organised, read our guide on keeping proper records:
/guides/accounting-software/sole-trader-record-keeping

In practice, many sole traders use accounting software to track mixed-use expenses and simplify tax.

👉 Compare the best accounting software options here:
/best/accounting-software-sole-trader

Final answer

So, can sole traders claim phone and internet costs in the UK?

Yes — but only the business portion.

If you want more detail on related costs, see our full list of sole trader expenses and our guide to working from home expenses for sole traders.

If the cost is shared, you must make a reasonable split and only claim what relates to your business.

The simplest approach:

• Keep your bills
• Use a fair percentage
• Stay consistent
• Track everything properly