Last updated: March 2026 • Reviewed by Compare The Networks
Business vs Personal Mobile: At a Glance
| Feature | Business Contract | Personal Contract |
|---|---|---|
| Pricing | Excludes VAT Saves 20% | Includes VAT |
| Tax deductible | Yes — 100% if business-only | No (unless partial business use claimed) |
| VAT reclaim | Yes (VAT-registered businesses) | No |
| Multi-line management | Spend caps, usage monitoring, single invoice | Individual accounts only |
| Credit check | Business credit check | Personal credit check |
| Contract holder | Business entity | Individual |
| HMRC clarity | Clean expense claim | Need to justify business % |
The Real Cost Difference
Let’s compare the actual cost of a £20/month unlimited data plan on business vs personal:
| Cost Element | Business Contract | Personal Contract |
|---|---|---|
| Monthly price (inc VAT) | £24.00 | £20.00 |
| VAT reclaim | -£4.00 | £0 |
| Net cost | £20.00 | £20.00 |
| Corporation tax saving (25%) | -£5.00 | £0 |
| Effective cost | £15.00/mo 25% Less | £20.00/mo |
| Annual effective cost | £180 | £240 |
For a sole trader paying 40% income tax, the effective cost is even lower at £12.00/month. The tax benefits of a business contract make it significantly cheaper in real terms.
Switch to a Business Mobile Contract
Keep your number, save on tax, and get better management tools. We’ll find the best business deal for you.
Get a Business QuoteWhen to Choose Business vs Personal
Choose a Business Contract If:
- You are self-employed, a sole trader, or run a limited company
- You want to reclaim VAT on your mobile costs
- You want the full cost as a tax-deductible expense
- You need multiple lines with central management
- You want a clean separation for HMRC
A Personal Contract May Suit If:
- You are employed (not self-employed) and your employer doesn’t provide a phone
- You are not VAT registered and don’t file self-assessment
- You want a single phone for personal and occasional work use
How to Switch from Personal to Business
- Request a PAC code from your current personal provider (text PAC to 65075)
- Choose a business plan — we’ll compare all networks for you
- Port your number — your existing number transfers to the new business contract within 1 working day
- Start claiming — the full cost is now a business expense from day one
Read our guide: How to Claim Your Business Mobile as a Tax Expense
What is the difference between business and personal mobile contracts?
Business contracts are priced ex-VAT (saving 20%), are tax-deductible, include fleet management tools, and use business credit checks. Personal contracts include VAT and cannot be claimed as expenses.
Is a business mobile cheaper than personal?
Yes, after tax benefits. A £20/month business plan effectively costs £12-15/month after VAT reclaim and tax deduction. That’s 25-40% cheaper than an equivalent personal plan.
Can a sole trader get a business mobile?
Yes. All major UK networks accept sole traders for business contracts. You typically need a UTR number or proof of self-employment. No Companies House registration required.
Can I keep my number when switching to business?
Yes. Request a PAC code from your current provider (text PAC to 65075) and give it to your new business provider. Transfer takes 1 working day.