A short guide to expenses your phone bill to your limited company. You can also find out how to expense your phone bill here and other work from home costs here.

How (and what) you expense depends on the type of company that you own.

  • If you are a sole trader and want to expense your internet bill to your company click here
  • If you have a limited company and want to expense your internet bill to your company click here

If you are a sole trader and want to expense your internet bill to your company:

You are only allowed to expense your business related activity. So this will usually be a portion of your internet bill, not the entire cost.

A good way to work this out is take a couple of months internet activity, and analyse the proportion of business activity, then you can use this for the rest of the year.

If you are VAT registered, then you can only claim the VAT on the portion of your internet bill that is considered business.

If you have a limited company and want to expense your internet bill to your company

You can only claim your internet bill as an expense if it is within your limited companies name. Even then, the amount must be included one of two ways:

  1. You have a rental agreement with your company, see here to find out more about what that entails. If you have an agreement, you can include your internet bill within there.
  2. You have a separate broadband line that runs into the office part of your home which is solely for business use, or you have new broadband agreement as one was not previously available before working from home, in this case personal use must be limited.

See here for HMRC’s official guidelines.

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Think that this may be something you are interested in? Want to find out more? Book a quick call with us here and we can go through your options within our free review of your books.