Can I Claim Home Broadband as a Business Expense?
Yes, But It Depends on Your Method
If you work from home and use your broadband for business, you can claim a portion of the cost. How you claim depends on which home-working method you use.
If You Use Simplified Expenses
The flat rate for working from home (£10, £18, or £26 per month depending on hours) already includes broadband costs. You cannot claim broadband separately on top of the simplified rate.
If You Use Actual Costs
Broadband is one of the household expenses you include in your actual costs calculation. You apply your business proportion (typically based on rooms used and hours worked) to your broadband bill along with gas, electricity, council tax, and other household costs.
If You Have a Dedicated Business Line
If you have a separate broadband connection used exclusively for business, you can claim 100% of the cost. This is unusual for home workers but might apply if you have a distinct home office with its own internet line.
How Much Can You Claim?
A typical broadband bill of £35/month costs £420/year. If your business proportion is 50%, you can claim £210.
At the basic tax rate, that saves you £42. At the higher rate, £84. It's not a fortune, but combined with all your other allowable expenses, it contributes to reducing your tax bill.
Mobile Data
If you use mobile data for business (tethering, working on the go), the business proportion of your mobile data costs is also claimable. This is separate from the working-from-home calculation.
For more details, see our full guide on phone and internet expenses.
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Tax & Compliance Specialists
Our tax specialists have decades of combined experience in UK sole trader and small business taxation, MTD compliance, and HMRC submissions. All content is reviewed against current HMRC guidance before publication and updated quarterly to reflect legislative changes.
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