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Mobile Phone Contracts Explained

Business Mobile Phones

Around 95% of the population of the UK own a mobile phone and it’s now cheaper than ever to take out a contract. For businesses, it’s vital for you and your employees to stay in contact with clients and each other.

No matter the size of your business, even if it’s just you, there’s contracts available – of course, the more employees on the contract, the better the deal you will get.

You can choose a Business Mobile Phone contract to include the phone or as a SIM only deal if you already have a phone or want to buy separately.

What are the benefits of a Business Mobile Phone?

Having a Business Mobile Phone contract can save you money and offer lots of advantages to your business too.

  • Save Money – a Business Mobile Phone Contract is classed as a business expense so can be written off against Corporation Tax.
  • Reclaim VAT – if the mobile phone is purchased solely for your business, you can reclaim the VAT.
  • Benefit in Kind – you can give your employees a phone as benefit and there’s no tax for the company or employee as it’s a Benefit in Kind.
  • Get more work done – you and your employees can use their Smart Phone wherever they are, access emails and systems, making the company more efficient.
  • Switch off – you can keep work and home life separate; your phone can be turned off.
  • One Bill – you can setup all contracts under a single bill with one provider

How much are Business Mobile Phone Contracts?

In most cases, the cost of a Business Mobile Phone Contract is about the same cost as a Personal Mobile Phone Contract, the provider normally quotes the prices excluding VAT as you can reclaim the VAT or a portion of it if you are VAT registered.

Some providers do offer slightly better deals, you may get an offer for taking a longer contract or sometimes are offered more data. There are also some extra benefits from some networks – entertainment packages that include Spotify and some TV.

You then have access to different add-ons to support your business, here’s some of them:

  • Landline number diverted to your Mobile – people trust businesses with landline numbers as it makes them look more corporate.
  • Mobile Payment Terminal – get a pocket-sized credit card payment terminal that connects to your phones signal and you can take payments on the move.
  • Better Insurance – some businesses couldn’t survive without a Mobile Phone, there’s insurance available that replaces lost, damaged or stolen phones within hours.
  • Technical Support – business requirements are more complex, you might need help with payments, email, VPN.
  • Account Management – many providers will assign you an account manager to make it easier to get in touch.
  • Business Support – access to a network of HR & Legal Experts to help you grow.
  • International Calls – get discounts and add-ons if you need to call abroad.

How many Business Mobile Contracts can I take out?

The short answer to this is from 1 to infinity – there’s no limit to the number you can take out. There are options if you are the only employee or you are a huge company with thousands of employees, and you wanted to give them all a Mobile Phone Contract.

Normally, the more contracts you take, the better the deal you get. You may also get access to better account management and support, more calls, texts and data, there’s probably some free add-ons too.

It depends on the number of employees you have though. Some networks have dedicated team’s setup to deal with businesses depending on the size. This is normally grouped as follows:


  • 1-9 Employees
  • 10-150 Employees
  • 150+ Employees

Small Business Mobile Phone Contracts

As a Small Business, it’s vital for you and your employees to be able to keep in touch with Business Contacts and each other. But it’s not just about keeping in touch these days, smart phones bring us email, website browsing, being able to login to business websites, CRM systems and access reporting tools.

Many businesses rely on their staff to travel whilst working, both nationally and internationally, a mobile phone allows them to do everything they need to do whilst away from the office.

Giving your staff mobile phones are a huge benefit to them, allowing them more freedom whilst working but also the use of a mobile phone. Often giving a new and top of the range handset every 1-2 years.

From the business point of view, you know that your staff are available to speak to business contacts and keep track of what’s going on with your business on the move, but also there’s ways to save money by paying a monthly bill rather than individual calls, it’s therefore less admin and often the VAT can be reclaimed too.