Can Taxi Drivers Claim Phone & Communications?
Your phone is an essential business tool for receiving bookings, navigation, and communicating with passengers. A portion of your phone costs is tax-deductible.
Yes - phone & communications is an allowable business expense for UK taxi and private hire drivers.
What You Can Claim
- Business proportion of monthly phone contract
- Business proportion of pay-as-you-go top-ups
- Data plan costs used for navigation and booking apps
- Hands-free kit or Bluetooth earpiece
- Phone mount or cradle for the vehicle
- Replacement charging cables
- Second phone used exclusively for business
What You Cannot Claim
- Personal phone calls and texts
- Streaming subscriptions (Spotify, Netflix) used via the phone
- Phone case purchased purely for aesthetics
- Upgrade costs for personal use features
- Penalty charges for exceeding contract limits
Typical Annual Range
£200 - £600 per year
Average annual spend by UK taxi drivers on phone & communications. Your actual costs may vary depending on location, hours worked, and vehicle type.
HMRC Rules
If you use one phone for both business and personal use, you must apportion the cost. A common approach is to claim 50-75% as business use based on your actual usage patterns. If you have a separate phone used exclusively for taxi work, the full cost is deductible. HMRC expects a reasonable basis for apportionment.
Maximise Your Phone & Communications Deductions
A separate business SIM or phone makes record-keeping much simpler
Unlimited data plans are often cheaper than paying for overages from navigation apps
Phone mounts and hands-free kits are 100% business if only used in the taxi
Keep your phone bill as evidence - highlight business calls if HMRC queries your claim
Frequently Asked Questions
Common questions about claiming phone & communications on your tax return
What percentage of my phone bill can I claim?
There is no fixed percentage. HMRC expects you to estimate actual business use. Most taxi drivers claim 50-75% of a shared phone. If you have a separate business phone, claim 100%.
Can I claim the cost of a new phone?
The business proportion of a new phone is deductible. If you buy a phone for 800 and use it 60% for business, you can claim 480. Phones costing over 1,000 may need to be treated as capital expenditure.
Are app subscriptions deductible?
Business apps like navigation (Waze, Google Maps premium), taxi booking apps, and accounting apps (like Fyled) are fully deductible. Personal apps are not.
Track Your Phone & Communications Expenses Automatically
Fyled makes it easy to record, categorise, and claim all your taxi expenses. See exactly how much tax you will save.