Understanding Business Use Claims for Writers
For freelance writers in the UK, understanding what you can claim for phone and internet is fundamental to optimising your tax position. These are often significant, recurring expenses that, when claimed correctly, can substantially reduce your Self Assessment tax bill. HMRC recognises that many self-employed individuals use personal assets for business purposes and allows you to claim a proportion of these costs. The key is being able to demonstrate a clear and reasonable business use percentage, supported by records. This is one of the most common areas where writers either miss out on legitimate claims or make errors that could trigger an HMRC enquiry.
When considering what you can claim for phone and internet, the fundamental principle is 'wholly and exclusively' for business purposes. If you have a contract that is solely for business calls or a dedicated business broadband line, you can claim 100% of the cost. However, for most freelance writers, their mobile phone and home broadband are used for a mixture of business and personal purposes. In this case, you must make a fair and justifiable apportionment. Failing to do this correctly is a common pitfall, but using a dedicated tax planning platform can help you track usage and calculate accurate deductions.
Calculating Your Allowable Deductions
So, how do you practically determine what you can claim for phone and internet? Let's break down the calculations with 2024/25 tax year context. For your mobile phone, you need to establish the percentage of business use. A robust method is to analyse a sample bill, identifying calls to editors, clients, or for research, along with data usage for emails and online work. If your total monthly bill is £40 and you can demonstrate 60% business use, you can claim £24 per month, or £288 annually. This directly reduces your taxable profit.
For home broadband, the calculation is similar but often requires a different approach. A common and HMRC-accepted method is based on time spent on business activities. If you work 35 hours a week on writing and administrative tasks and your household uses the internet for 120 total waking hours, your business use is approximately 29%. On an annual broadband cost of £420, your claim would be £121.80. It's vital to document your rationale. Our tax calculator feature is designed to handle these precise apportionments, ensuring your claims are accurate and defensible.
- Mobile Phone: Claim a percentage of your contract cost or the full cost of a business-only contract.
- Home Internet: Apportion your broadband bill based on reasonable usage metrics.
- Equipment: If you buy a new phone, laptop, or router primarily for business, you may be able to claim the full cost through Annual Investment Allowance (AIA) or as a capital allowance.
- Apps & Subscriptions: Software subscriptions for grammar checkers, cloud storage, or research databases used for your work are fully claimable.
The Simplified Expenses Alternative
For writers who find detailed tracking cumbersome, HMRC offers a 'Simplified Expenses' system using flat rates. However, it's crucial to note that this does not cover phone and internet costs. Simplified expenses only apply to vehicle mileage, working from home (using a flat rate per hour), and living in your business premises. Therefore, when determining what you can claim for phone and internet, you must use the actual costs method. This makes maintaining good records non-negotiable. Keeping itemised bills and a log of business usage for a typical month can provide the evidence needed to support your claim during the entire tax year.
This is where technology provides a significant advantage. Manually logging calls and internet time is tedious. A modern tax planning software can help you categorise transactions, store digital copies of bills, and apply consistent apportionment percentages with ease. This not only saves time but also creates a clear audit trail for HMRC, demonstrating that you have considered the question of what you can claim for phone and internet thoroughly and responsibly.
Record Keeping and HMRC Compliance
When HMRC reviews your self-assessment return, they will expect you to substantiate any claims for phone and internet. You are required by law to keep records for at least 5 years and 10 months after the end of the tax year. Good practice involves keeping at least one detailed, itemised phone bill per quarter to establish a usage pattern, along with your annual broadband contract and statements. If you use a dedicated tax planning platform, these documents can be stored securely within the system, linked directly to the expense claim.
It's also wise to be prepared for a change in patterns. If you take on a major project that requires significantly more phone or internet use, your claimable percentage for that period could be higher. Consistency is key, but so is accuracy. A sudden, unsubstantiated jump in claims can be a red flag. Using software that offers real-time tax calculations allows you to model different scenarios, such as the tax impact of a new phone purchase or a change in your contract, ensuring you stay compliant while maximising your entitlements.
Maximising Your Claims Legitimately
To truly optimise your tax position, go beyond the basics of what you can claim for phone and internet. Consider if you have a dedicated work mobile. If so, the entire cost of that contract is claimable. Look at bundled services; if your phone contract includes data tethering that you use for business on the go, ensure this is factored into your business use percentage. Don't forget one-off costs like a new router or a signal booster if purchased to improve your business internet connection.
For many writers, the administrative burden of tracking these details is the biggest barrier to claiming everything they are owed. This is the core problem that tax planning software solves. By automating the tracking, calculation, and record-keeping for expenses like phone and internet, it allows you to focus on your writing. You can be confident that you are claiming correctly, reducing your tax liability legally, and maintaining full HMRC compliance. Exploring the features of a platform like TaxPlan can be a worthwhile investment in the financial health of your writing business. Getting started is the first step towards a more streamlined and profitable tax year.
