How much can I claim for business calls from my mobile phone?
Answer: Mobile phone tariffs can be complex and it is not always easy to determine the actual cost of a business call. Some tariffs include a certain amount of free time in the rental charge. In these cases there may be no cost to be deducted. As an example if the tariff for the mobile phone includes up to 10 minutes of free calls each month and in one month the employee pays £22, which is the rental charge only, then because the employee’s total calls, all of which were business calls, amounted to 8 minutes no deduction can be permitted because no expense has been incurred in making the business calls.
The following month the employee pays £28, which is £22 for rental and £6 for calls. Calls that are charged are paid for at a rate of 20p per minute. In the month the employee made calls totalling 40 minutes, of which 30 minutes were for business and 10 minutes were private. A deduction should be permitted for the cost of business calls, and the amount that can be deducted is £4.50, which is 75% of the call charges, because 75% of the total call time was made up of business calls.