Mobile phone - tax deductible?

NoComprendo

Hello, this is my first post so go easy on me!

I have a full time job, and since lockdown have a side hustle that makes just enough money that I have to do a self assessment tax return. I'm still learning what I can/can't put through the books and have a mobile phone question... If I buy a sim free phone, can I put it through my books? I'm not interested at this point in claiming back my phone bill and don't want a business account, plus the main reason I want a decent phone is for the camera, so I can take better photos of my products for Etsy etc.

What do you reckon? Thanks in advance.

Brie

Business expenses are deductible so likely.  As long as it's not excessive to the business I would guess.  So if you are likely to only ever make a couple £100 a year you might not want to be trying to put a top grade latest iPhone costing £2k as an expense.

[Deleted User]

NoComprendo said:

Hello, this is my first post so go easy on me!

I have a full time job, and since lockdown have a side hustle that makes just enough money that I have to do a self assessment tax return. I'm still learning what I can/can't put through the books and have a mobile phone question... If I buy a sim free phone, can I put it through my books? I'm not interested at this point in claiming back my phone bill and don't want a business account, plus the main reason I want a decent phone is for the camera, so I can take better photos of my products for Etsy etc.

What do you reckon? Thanks in advance.

Would the trading allowance be beneficial for you where you can claim a £1000 allowance whether you incur that amount of expenses or not? If you do it’s £1000 allowance with no additional claim. 

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

NoComprendo

Thanks both. I've taken around £4k, but spent about £3k, so I'm not retiring any time soon! The phone I'm looking at is around £700, so i might just go for it and hope I make a bit more for HMRC between now and April 

[Deleted User]

Is the £3k purchases only or business expenses?

NoComprendo

It's business expenses (I think?), I'm selling prints and cards. Every time I make a bit of money I spend it on larger quantities of print, as the more I buy, the cheaper the unit price. Then there's packaging, post etc... It's never ending once you get into it!

DullGreyGuy

So this means you are using cash accounting then if you are counting buying stock as an up front business expense?

[Deleted User]

DullGreyGuy said:

So this means you are using cash accounting then if you are counting buying stock as an up front business expense?

Yes - this is what I was looking to clarify.

DE_612183

Business Expense - yes - but you MAY have to register it on a business tariff with your provider.
The other POSSIBLE plus side of course is that you MAY BE ABLE to claim depreciation of asset as an expense as well.

[Deleted User]

DE_612183 said:

Business Expense - yes - but you MAY have to register it on a business tariff with your provider.
The other POSSIBLE plus side of course is that you MAY BE ABLE to claim depreciation of asset as an expense as well.

The op is looking to claim the cost of the phone as a capital allowance expense - first year allowance or AIA. Depreciation is an accounting term - something different altogether and not an allowable expense.

NoComprendo

Hi all, sorry, been doing the day-job so a bit slow to reply. You'll have to excuse my lack of tax knowledge (I'm pushing 50 and only did my first return last year), but yes, I'm cash accounting. I have a spreadsheet with all my sales and expenditure, all dated, plus printed receipts.