How to calculate what percentage of your phone bill you can claim
Calculating how much of your phone bill you can write off as a business expense is a little simpler than your home expenses. All you need to do is work out what percentage of the time you use your phone for work vs for personal use, and use this to calculate how much of your bill you can write off.
A lot of smartphones these days calculate your ‘screen time’ for you which can help you see how much time you spend on each activity on your phone. For example, you may see that 30% of the time you spend on your phone is spent on your work email app over the course of a week, which could help with your final calculations.
(You may, on the other hand, see that you’ve only spent 10% of your time on your work emails, and 50% procrastinating on Instagram and Facebook, which technically means you can’t write as much of your phone bill off. Now if that’s not a good reason to say off Social while you work, we don’t know what is.)
Remember – HMRC is all about making sure your expense claims are ‘reasonable’. So it’s a good idea to put some time into assessing how much of your rent or phone bill realistically goes towards business activities.
When you file your taxes through Finmo, we’ll be there every step of the way to help you with these calculations, advising you on the best possible formula for your personal circumstances.