Business-related phone costs may be reimbursed when personal devices are used for work. To avoid tax or National Insurance implications, only the portion of phone usage that relates directly to business may be claimed.

For directors or employees using personal contracts:

• An itemised phone bill is required to identify calls or data used for business.
• Only the business portion of the monthly phone bill may be reimbursed.
• If the full cost is reimbursed without distinction, it may be treated as a benefit-in-kind and become taxable.

If the phone is provided by the company:

• It must be under the company’s name and used primarily for business.
• HMRC allows one mobile phone per employee or director to be provided tax-free, provided private use is minimal.

In all cases, proper records must be kept, including usage logs or copies of bills, to support any reimbursement and ensure compliance.