Can I claim phone and internet costs as business expenses?

Understanding the question: what counts as a “business expense”?

If you use your phone and internet to run or support your work, it’s natural to wonder whether those costs can be claimed as business expenses. In many cases, the answer is yes—but almost never for the entire bill unless the service is used exclusively for business. The core idea is simple: you can generally claim the part of a cost that is incurred “wholly and exclusively” for business purposes (or the closest equivalent standard in your tax system). That means you need to identify the business portion of your phone and internet use and separate it from personal use.

Phone and internet costs sit in a category often described as “mixed-use” expenses. These are expenses that have both a business and a personal element. Because modern life blends everything onto the same device and connection—calls, messaging, banking, streaming, social, email, client meetings, and marketing—mixed-use is the norm. The challenge is to calculate a reasonable, defensible split between business and personal usage, and then keep records to support that split if you ever need to explain it.

When phone and internet costs are usually claimable

Phone and internet costs are most commonly claimable when they have a clear link to earning business income. Examples include making or receiving client calls, using mobile data to access work apps on the go, hosting video meetings, uploading work files, running an online shop, responding to customer enquiries, maintaining a business website, doing paid advertising, or using cloud services tied to your work.

If you work from home—either full-time or part-time—your home internet is often essential to your business activity. Similarly, a mobile phone can be a key tool for communication, authentication (such as two-factor login), and business administration. The more central the phone or internet is to generating your income, the easier it is to justify claiming a portion of those costs.

Even if your business is small, new, or side-based, the key is not the size of the business but the purpose of the expense. If you genuinely use these services to support business activities, then at least part of the cost may be allowable.

When they’re not (or only partly) claimable

There are several situations where claiming phone and internet costs becomes difficult or inappropriate. The most common is trying to claim 100% of a mixed-use bill when you clearly also use it personally. If the same phone handles family calls, social media, personal browsing, streaming, and general personal life, then the bill is not purely business.

Another tricky area is claiming costs that are more about personal convenience than business necessity. For example, upgrading to an expensive unlimited mobile plan primarily for personal entertainment or claiming high-speed broadband largely to support household streaming, with only incidental work use, can be hard to defend as a business expense. That doesn’t mean you can’t claim anything—but your business percentage may be lower than you might hope.

Similarly, if an employer reimburses you or provides a phone plan, you generally can’t also claim the same cost yourself. The general principle is no “double dipping”: you can’t claim a cost you didn’t bear.

Different working arrangements: self-employed, company director, employee, and hybrid

How you claim phone and internet costs can depend on how you work.

If you’re self-employed (such as a sole trader, freelancer, or independent contractor), you normally claim expenses as part of calculating your business profit. Mixed-use costs are typically apportioned, and the business portion is deducted.

If you operate through a limited company and you’re a director, phone and internet costs can often be paid by the company or reimbursed to you, but the “right” method depends on whether the service is in the company’s name, whether it’s used privately, and how your local rules treat benefits provided to directors.

If you’re an employee, the rules often differ. Many systems allow deductions only for costs that are required for your job and not reimbursed by your employer. Employee claims can be more restrictive. If you’re an employee who occasionally works from home, you may have a narrower set of allowable deductions and may need to show that you incurred additional costs specifically because of work.

If you have a hybrid arrangement—some self-employed income and some employment income—you may be able to claim a portion of phone and internet costs against your self-employed income, and potentially a different treatment (or none) for employment, depending on the rules where you live.

Business-only plan vs shared personal plan: which is easier?

The cleanest situation is a business-only phone and/or internet plan that is used exclusively for business. If you have a separate business phone number and device that you truly keep for work, then claiming the full cost is often straightforward. Likewise, a dedicated business internet connection at a commercial premises is typically easier to justify as 100% business.

But most people don’t operate this way. Many small business owners run everything through one phone and one broadband connection, especially early on. That’s fine—it just means you’ll normally claim a percentage rather than the full bill.

There’s also a middle-ground: one plan, but a strong business dominance. If your phone is mostly work and only a small amount personal, you might claim a high percentage—provided you can justify it with a reasonable method and records.

How to work out the business-use percentage

There isn’t a single universal method that applies everywhere, but there are common approaches that tax authorities and accountants tend to consider reasonable. The best method is usually the one that most accurately reflects how you actually use the service, and that you can repeat consistently.

1) Time-based usage

For internet, a time-based method can make sense. For example, if you track that you use the internet for business for a certain number of hours per week compared to total household usage, you could apportion costs accordingly. This can be challenging, but it can work if your personal use is fairly stable and your business use is structured (for example, you work set hours from home).

2) Data-based usage

For mobile plans, a data-based approach can be helpful, especially if you rely heavily on mobile data for work. Some mobile providers show data usage by app. If most data is consumed by work apps (email, conferencing, cloud storage, business messaging platforms), you might justify a higher business portion. Be careful: data usage doesn’t always reflect the full cost of a phone plan, which may include calls, texts, and device financing.

3) Itemised call and message logs

If your bill is itemised, you can identify business calls and texts and calculate the proportion of business communications. This can be particularly persuasive because it directly ties the expense to business activity. However, itemised billing is less common now with unlimited plans, and many business communications happen through apps rather than traditional calls and SMS.

4) A representative “sample period”

A practical approach is to track usage for a representative period—say one month or three months—then apply that percentage across the year, revisiting it if your circumstances change. For instance, if you track in February and it fairly reflects your typical workload, you might use that as the basis for an annual split. The key is that the sample must genuinely be representative and you should keep evidence of the calculation.

5) A reasonable flat percentage based on work pattern

In some circumstances, a reasonable flat percentage can be acceptable, especially for small businesses where the amounts are not huge and the method is consistent. For example, someone who uses their phone heavily for client calls might claim 70%, while someone who does occasional admin might claim 20–30%. The risk is that “reasonable” must still be justifiable if questioned, so it helps to have at least some supporting logic (like number of business calls per week, frequency of client contact, or the nature of your role).

What you can claim: common phone and internet cost components

Phone and internet expenses can include more than just the monthly service fee. Depending on how your plan is structured, you may have several components that need to be considered separately.

Monthly service plan charges

This is the most common claim. If your plan is mixed-use, you typically claim the business percentage of the monthly fee.

Call charges, international calls, and roaming

If you incur extra charges for business calls—such as calling overseas clients or roaming for a business trip—these can often be claimed in proportion to business use, and sometimes 100% if they are clearly and exclusively business-related (for example, a separate roaming package purchased solely for a business trip). Keep clear records of the reason for the expense.

Mobile data add-ons

Top-ups or data add-ons used for work are often claimable. If you can show they were purchased specifically because you needed extra data for business tasks (like video calls or uploading files), that strengthens your position.

Broadband installation or setup fees

Setup or installation fees may be claimable, often apportioned if the connection is mixed-use. If you installed a connection solely to support a home office that is dedicated to business, you may have a stronger argument for a higher business portion, but exclusive business use for a home connection is rare.

Hardware: routers, modems, phones, and accessories

Hardware is often treated differently from service costs. A router or modem, a smartphone handset, a headset, a microphone, or a signal booster may be business expenses if used for work. Whether you deduct the full cost upfront or claim it over time can depend on your local rules and the cost of the asset. If the device is mixed-use, you may need to apportion. If you buy a dedicated business phone or a dedicated router for business use, that can simplify things.

Repairs, replacements, and insurance

If you pay for phone insurance, screen repairs, or replacement devices, these costs may be deductible in the same business-use proportion as the phone itself. Again, dedicated business equipment tends to be simpler.

Special case: working from home and “home office” rules

Many people first start thinking about phone and internet deductions when they begin working from home. Some tax systems treat home working costs under special rules, offering either a simplified method (a flat rate for home working) or an actual cost method (apportioning household bills based on business use). In practice, phone and internet can fall into either category depending on local rules.

Under an “actual costs” approach, you generally identify the part of your broadband or home phone that relates to business use. Under a “simplified” approach, you might claim a standard amount per hour or per day worked from home, which may be intended to cover some household costs. If you use a simplified method, you may or may not be able to additionally claim a portion of broadband—this varies by jurisdiction and the exact scheme.

Because the rules can differ, a safe mindset is: don’t assume that because you work from home you can claim your entire internet bill. Instead, focus on how much the internet is used for business, whether you incurred additional costs due to work, and what method your tax system expects you to use.

What records should you keep?

Keeping good records is the difference between a claim that feels stressful and a claim you can stand behind. You don’t necessarily need to track every single call for the entire year, but you should keep enough evidence to show that your split is reasonable and consistent.

Useful records include:

Copies of monthly bills for phone and internet services, showing the provider name, dates, and amounts paid. If you claim add-ons or extra charges, keep those invoices too.

A usage log for a sample period, showing how you calculated your business percentage. This might be a spreadsheet, notes, or screenshots from your phone’s screen-time or data-usage reports.

Evidence that supports business usage: calendar entries for client calls, logs from a business phone system, or records of video meetings can all help demonstrate that the phone and internet are actively used for work.

Notes about any changes during the year, such as taking on more clients, shifting from part-time to full-time self-employment, moving house, upgrading plans, or buying a separate business device.

Proof of payment, such as bank statements or receipts, especially if you pay multiple providers or pay for hardware separately.

Examples of common scenarios (with practical ways to claim)

Examples can make this much clearer. The exact percentages below are just illustrations; what matters is that your split matches your real usage and you can justify it.

Scenario A: Freelancer using one personal phone for mixed use

You’re a freelance consultant and you use your mobile for client calls, messaging, email, and occasional hotspot use when traveling. You also use it personally. You track one month and estimate 60% of calls/messages and 50% of data usage relate to business. You decide to claim 55% of the monthly plan as a reasonable blended figure, supported by your sample period and the nature of your work. You keep the bill and your usage notes.

Scenario B: Online seller using home broadband heavily for business

You run an online shop from home. You use broadband to manage listings, respond to customer messages, process orders, and upload product photos. But other household members also stream and browse. You track a representative month and estimate business use at 40% based on hours spent on business tasks compared to overall household use. You claim 40% of the broadband fee and keep your working-hour records and a note of how you calculated it.

Scenario C: Dedicated business phone

You buy a second phone and a separate SIM exclusively for business and you keep personal use off it. You claim 100% of the business plan and, depending on local rules, claim the phone cost either upfront or over time. You keep evidence that it’s a business line (separate number on your website, client communications, and a clear separation from personal use).

Scenario D: Employee occasionally working from home

Your employer allows you to work from home two days a week. You use your home internet and personal phone for work calls, but you’re not reimbursed. Whether you can claim anything depends on local employee deduction rules. If allowed, you may need to show the costs were required for work and that you incurred additional expense because of working from home. If your employer would have reimbursed you but you chose not to claim reimbursement, some systems may restrict the deduction. The best approach is to check your local rules and keep a record of days worked from home, along with any employer policy documents.

Potential pitfalls to avoid

Phone and internet claims are common, but they can also be misunderstood. Avoiding a few mistakes can save you headaches.

Claiming 100% without justification

If you claim the entire bill on a phone or broadband connection that is clearly mixed-use, it may raise questions. If audited, you may be asked to explain why personal use is zero.

Using an inconsistent method year to year

If you claim 20% one year and 80% the next without a clear business change, it can look arbitrary. If your work genuinely changed, document it.

Forgetting device financing or bundled plans

Many mobile plans bundle service and handset payments. The tax treatment can differ between a service expense and an asset purchase. Make sure you understand what portion of your payment is for service and what portion is for the device, and treat each appropriately.

Claiming personal upgrades as “business necessities”

It can be tempting to justify the highest-speed package or premium phone as business-critical. Sometimes it is. But if you can’t explain why your work needs it—beyond general convenience—consider claiming a more conservative business portion.

Not keeping evidence of the split

A percentage with no backup is fragile. Even a simple one-month sample log and a short explanation can make your claim much more defensible.

Can you claim if you’re on a family plan or shared household internet?

Yes, potentially. A family plan or shared broadband connection doesn’t automatically block a claim. It simply means you’re almost certainly dealing with mixed-use. If you pay the bill personally but use the service for business, you can often claim the business-use portion that relates to you and your work.

The key is how you determine your business percentage. On a family plan, your personal line might be one of several lines. In that case, it can be reasonable to isolate your line’s usage and cost if your provider breaks it down. If not, you may need a reasonable method to attribute your share of the plan. Document your approach.

What about claiming internet at a rental property, coworking space, or temporary location?

If you rent a coworking space that includes internet, the cost is often embedded in your membership or rent. In that case, you’d typically claim the relevant portion of the coworking fee as a business expense. If you pay separately for internet at a temporary worksite, project location, or short-term rental used for business travel, those costs can often be claimed when clearly tied to business activity.

Be mindful of personal travel combined with business travel. If you rent a place for a week and only work two days, the business portion of any internet add-on might need apportionment. Keep travel notes, work schedules, and receipts.

Can you claim streaming services, apps, and subscriptions that run through your internet?

These aren’t phone or internet costs, but they often appear alongside them. Business-related software subscriptions—such as cloud storage, project management tools, conferencing platforms, or business phone apps—may be claimable if used for business. Entertainment streaming is usually personal unless it is directly tied to your business activity (for example, a media reviewer or content creator might have a stronger argument). As always, the question is whether the expense is incurred for business purposes and how much personal benefit is involved.

How to make your claim more robust

If you want to reduce risk and make life easier at tax time, consider these practical steps.

First, decide on a method for your business-use percentage that you can explain in plain language. Keep it consistent. If you use a sample month, save the supporting screenshots or notes.

Second, consider separating business and personal use where practical. A separate business SIM, eSIM, or dedicated handset can dramatically simplify recordkeeping. Even if you don’t go fully separate, creating clearer boundaries—like using a specific calling app for business or keeping a log of business calls—can help.

Third, review your percentage if your business changes. Taking on more clients, expanding hours, or starting a new service line can all legitimately increase business use. Make a note when these changes occur.

Fourth, keep digital copies of everything. Bills, receipts, screenshots, and notes can all be stored in a cloud folder labeled by tax year. Good organization often matters as much as the numbers.

How to calculate a simple split (a practical walkthrough)

Here’s a straightforward approach that many small business owners find manageable:

Step 1: Pick a representative month. Choose a month that reflects your typical workload and isn’t distorted by unusual holidays, travel, or downtime.

Step 2: Identify your business use. For phone: count business calls, estimate time spent on business calls, or review communication logs. For internet: track your business working hours and the tasks that require internet, or use device reports where available.

Step 3: Convert that into a percentage. For example, if you estimate that 25 hours per week of internet use is business out of a total 60 hours of household use, your business percentage might be 41.7% (25 ÷ 60).

Step 4: Apply the percentage to the bill. If broadband is 50 per month and your business use is 40%, you claim 20 per month.

Step 5: Keep your evidence. Save the bill and a note showing the calculation and the basis for the estimate.

Step 6: Review periodically. If your business expands significantly, repeat the sample period and update the percentage.

Do you need an accountant to claim these expenses?

You don’t necessarily need an accountant to claim phone and internet costs, especially if your business is simple and the amounts are modest. But professional advice can be valuable if you operate through a company, have complex mixed-use issues, work across multiple countries, have significant income, or want to be confident about how employee deductions interact with self-employed deductions.

An accountant can also help you choose a method that aligns with the rules where you live, and can suggest recordkeeping habits that reduce the chance of problems later.

Frequently asked questions

Can I claim my entire phone bill if I sometimes use it personally?

Usually not. If there is any meaningful personal use, you typically claim only the business portion. The exception is where personal use is genuinely insignificant or where the phone is dedicated to business. If you’re claiming close to 100%, you should have strong evidence to support it.

Can I claim my internet if my family also uses it?

Often you can claim a portion, but generally not the full cost. You’ll typically apportion based on business use versus total household use and keep a note of how you calculated it.

What if my business use changes during the year?

You can adjust. If your business grows or shrinks, it’s reasonable to update your business-use percentage from the point of change. Keep a note of when and why the change occurred and, if possible, redo a sample-period calculation.

What if I have an unlimited plan with no itemised usage?

You can still claim, but you may need a different method. Consider a sample-period log of business calls and work hours, use phone analytics for app usage, or estimate business use based on the nature of your work and keep supporting notes.

Can I claim the cost of a new smartphone?

Potentially, if it’s used for business. The treatment can depend on whether it’s considered an asset and on the cost. If it’s mixed-use, you usually claim only the business portion. Keep the receipt and note how it supports your work.

What about accessories like a headset, charging cables, or a mobile hotspot device?

These can often be business expenses if they’re primarily for work. A headset used for client calls or video meetings is a common example. If you also use it personally, apportion as needed.

Final thoughts: a sensible, defensible claim beats an aggressive one

Claiming phone and internet costs as business expenses is often legitimate and common, especially for modern work. The safest approach is to focus on the business portion, choose a method that reflects reality, and keep enough records to support your numbers. If you can separate business and personal use with a dedicated line or device, the process becomes much simpler. If you can’t, a reasonable percentage backed by a sample-period log and consistent treatment is usually the next best thing.

Ultimately, your goal is not just to reduce tax today, but to make claims you can confidently explain later. A clear link to business activity, a reasonable apportionment method, and tidy records will put you in a strong position—whether you’re a freelancer, a small business owner, a director, or someone balancing work from home with other responsibilities.