Understanding allowable expenses for podcasters
For UK podcasters operating as sole traders or through limited companies, understanding what you can claim for phone and internet is fundamental to legitimate tax planning. These communication tools are often essential for recording interviews, coordinating with guests, managing editing teams, and promoting your content. HMRC allows you to claim a proportion of these costs as allowable business expenses, provided you can demonstrate genuine business use. The key challenge for many podcasters lies in accurately determining and evidencing this business proportion while maintaining full HMRC compliance.
Many podcasters significantly underestimate their allowable expenses, particularly when it comes to mixed-use items like mobile phones and broadband. The 2024/25 tax year brings specific rules around these deductions that can substantially impact your tax liability. With the personal allowance frozen at £12,570 and basic rate tax at 20%, properly claiming these expenses could save hundreds of pounds annually. Using dedicated tax planning software helps ensure you capture every legitimate deduction while maintaining the necessary records HMRC requires.
Calculating your business use percentage
The cornerstone of claiming phone and internet expenses is establishing a reasonable business use percentage. For podcasters, this typically involves tracking your usage patterns over a representative period. Business-related activities might include: coordinating with co-hosts or guests, conducting remote interviews, uploading podcast files, communicating with editors, marketing your show on social media, and researching episode topics. Many podcasters find their business usage ranges from 30-70% of total phone and internet costs.
Let's consider a practical example: if your monthly broadband bill is £40 and you determine 60% is for podcast-related activities, you can claim £24 per month (£288 annually) as a business expense. For a basic rate taxpayer, this reduces your tax bill by £57.60. Similarly, if your mobile contract costs £25 monthly with 40% business use, that's £10 monthly (£120 annually) deductible, saving £24 in tax. These seemingly small amounts accumulate significantly over the tax year.
Documenting this usage is crucial. HMRC may request evidence supporting your claimed percentages. Many podcasters maintain simple usage logs for 1-2 months each year to establish patterns. Modern tax planning platforms can help track and calculate these proportions automatically, reducing administrative burden while ensuring accuracy.
Specific rules for mobile phones and landlines
HMRC has specific guidance on telecommunications expenses that podcasters must follow. If the contract is in your name and used partly for business, you can claim the business proportion as detailed above. However, if you have a phone used exclusively for business, you can claim 100% of the costs. Many professional podcasters maintain separate business phones to simplify their record-keeping and maximize deductions.
The rules differ slightly for landlines. If you have a single landline at home, you can claim the cost of business calls but not the line rental, as this is considered a private expense. However, if you have a separate business landline, the entire cost becomes deductible. For podcasters who conduct numerous phone interviews, this distinction becomes particularly relevant when optimizing your tax position.
When considering what podcasters can claim for phone and internet, don't overlook additional costs like handsets themselves. If you purchase a smartphone primarily for podcast work, you may be able to claim the cost through capital allowances or the Annual Investment Allowance, depending on your business structure.
Broadband and internet expenses
Broadband expenses follow similar principles to mobile costs. If you use your home broadband for podcast-related activities, you can claim the business proportion. This becomes particularly relevant for podcasters who upload large audio files, stream research materials, or use cloud-based editing software. The key is establishing a defensible business use percentage that reflects your actual podcasting activities.
Some podcasters wonder if they can claim a portion of their internet costs when working from home cafes or other locations. Generally, you can only claim expenses you actually incur, so if you're using included WiFi, there's typically nothing to claim. However, if you purchase dedicated mobile broadband for podcast work while traveling, this would be fully deductible as a business expense.
Understanding what podcasters can claim for phone and internet extends to related equipment like routers, boosters, or specialized internet connections if they're primarily for business use. If you upgrade to a business-grade broadband connection to ensure reliable uploads for your podcast, this cost becomes more clearly business-related.
Record-keeping and compliance requirements
Proper documentation is essential when claiming phone and internet expenses. HMRC expects you to maintain records for at least 5 years after the 31 January submission deadline of the relevant tax year. Your records should include: original bills and contracts, usage analysis supporting your business percentage, details of specific business calls if claiming individually, and any apportionment calculations.
Many podcasters struggle with the administrative burden of tracking these expenses manually. This is where technology significantly simplifies the process. Using a dedicated tax calculator integrated with expense tracking ensures accurate calculations while maintaining compliant records. The software can automatically apply your established business percentages to recurring bills, flag unusual patterns, and generate reports ready for your self-assessment submission.
When considering what podcasters can claim for phone and internet, remember that HMRC's key principle is "wholly and exclusively" for business purposes. While mixed-use items require apportionment, the deduction must reflect genuine business use. Overclaiming can trigger investigations and penalties, while underclaiming means paying unnecessary tax.
Maximizing your legitimate claims
To optimize your position regarding what podcasters can claim for phone and internet, consider these strategies: conduct a detailed usage analysis during a typical podcast production cycle, maintain separate business contracts where cost-effective, document your apportionment methodology clearly, and review your percentages annually as your podcast evolves. Many successful podcasters find that their business usage increases as their show grows, meaning they should regularly reassess their claims.
Technology plays a crucial role in maximizing legitimate claims while minimizing administrative time. Modern tax planning platforms can automatically categorize expenses, apply business percentages, and integrate with banking data to capture all deductible costs. This not only ensures you claim everything you're entitled to but also provides robust documentation should HMRC have questions.
Beyond phone and internet, podcasters should consider other related expenses like website hosting, podcast platform fees, recording software subscriptions, and equipment purchases. A comprehensive approach to expense tracking ensures you optimize your overall tax position rather than focusing on individual categories in isolation.
Simplifying your tax planning
Understanding what podcasters can claim for phone and internet is just one component of effective tax planning. The complexity arises from accurately tracking usage, applying correct percentages, and maintaining compliant records. For busy podcasters focused on content creation, manual expense tracking often becomes neglected, leading to either missed deductions or compliance risks.
This is where specialized tax planning software transforms the process. Instead of spreadsheets and paper receipts, modern platforms provide automated tracking, real-time tax calculations, and deadline reminders. The TaxPlan platform helps podcasters capture all allowable expenses while ensuring HMRC compliance, ultimately saving both time and money.
As you develop your podcast business, regularly reviewing your expense claims becomes increasingly important. What started as a hobby might evolve into a significant income stream, making proper tax planning essential. By systematically addressing what podcasters can claim for phone and internet alongside other business expenses, you build a solid foundation for sustainable growth while minimizing your tax liabilities legitimately.
