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Business Contract vs Consumer Contracts and the benefits behind them

Business vs Consumer Contracts: Why a Company Plan is Your Best Choice…

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Table of Contents:

Wondering the difference between a Business Contract vs Personal Contracts? We’ve got you covered! Read on to learn all of the benefits & why you need a business mobile plan…

Overview – Click & jump to each business benefit:

  1. Bulk discounts
  2. Lower prices
  3. Price guarantees
  4. Data-sharing
  5. Tax write-off
  6. Better service
  7. Warranty
  8. Contract buy-out
  9. Best for international travel
  10. Virtual landlines
  11. Business support
  12. Kit funds

A Brief Introduction…

Nowadays, mobile phones are indispensable to everyday life, and it is no exception for the business world. A mobile phone can now do all the things that a desktop can do; using apps you can edit and transfer any documents, attend video conferencing meetings, and receive calls or emails, from ANYWHERE.

Outstretched hand ready to mid-air smartphone in the forest
(Image credit: Luxhabitat)

Business phone contracts offer an array of benefits for companies big and small. They boost productivity, enable remote working, improve customer service, and much more; BUT, what we’re sure you want to know… 

Is a business contract CHEAPER than a standard consumer contract?

Simply put – YES!

Plus, they also come with a bunch of other benefits, offering real flexibility whether you are working from your office, home, or on the go. But there’s even more to come…

12 Reasons Business Contracts are Cheaper (and better!) Than A Personal Phone Contract.

In this new era, where the world is transitioning to flexible working, mobile phones are an important business tool to keep in hand.

Here are 12 reasons why you’ll want to choose a business plan vs a regular consumer contract:

#1. Multiple Handsets Discount

Pile of smartphone models with blank screens

A consumer who buys phones will pay the same standard rate, whether they take one handset or three handsets, right? Well, it’s not the same for businesses; the more handsets you buy, the bigger the discount! That’s the benefit of buying “in bulk”.

#2. Lower Price Plan

Word blocks spelling "Price" with business owner's hand placing the final increase or decrease piece

Have you ever heard about “Sharer plans“? Reserved for businesses, these plans allow you to reduce your tariff costs by offering a fixed amount of minutes to use, but calls between users in the same group are free. This way, you can effectively enjoy unlimited minutes (if you select the right bundle) but at a lower price point.

#3. Price Promise 7-day price guarantee sticker with 3 branded SIM cards

Some networks offer big and small business contracts with a price promise. This means that if you find a cheaper price with a competitor, they will offer you a refund of the difference. 

For example, Three Network advertise that if you find a better deal for your business contract at EE, Vodafone, or O2, they will beat it by at least £1 a month. shares this spirit with our 7-day price guarantee on all plans!

#4. Shared Data

Infographic of sharing business data across a cloud network
(Image credit:

Another great way to lower the cost of your monthly line rental is to share data. You can purchase a larger data bundle (EG: 200GB) and share the data between 10 users. This typically results in a cheaper total cost than each user having a separate data bundle which they may under or overuse.

#5. Business Expense

Business owner calculating contract expenses for tax write-off
(Image credit: Entrepreneur)

Under HMRC expenses rules, a business may provide staff with a mobile phone for work. These phones have a double tax advantage, in that they are both exempt + count as an expense against corporation tax. 

Simply put, every employee (from apprentice to CEO) can use their phones for business and personal needs alike, whilst saving on their taxes! 

Should you bill the phone & pay for it from the company, you do not have to distinguish between business or personal use – saving you money on taxes and time spent tediously segmenting between “business use” and personal activity.

Sole Traders & Partnerships

Sole trader contract with calculator for business expenses
(Image credit: realbusiness)

Sole Traders & Partnerships must still separate off a portion of the call changes for personal use. Don’t stress, this is kept simple by a single calculation and applying the same proportion to each monthly bill… Just make sure to keep an account of how you estimated the charges for the taxman!

Another interesting point is that in addition to the monthly line rental, the cost of the handset, insurance and any apps downloaded for business use can all be charged to the business directly. This reduces your personal tax liability whilst allowing the business to expend the charge for corporation tax purposes.

#5B. VAT

Inforgraphic of business man cutting VAT costs

The third tax benefit behind a business phone plan is “VAT”. If your business is VAT registered, you’ll save 20% on your monthly phone bills + the cost of your new phone should you purchase one. 

If the business is reimbursing an employee for call costs, it must reimburse the VAT element to an employee. However, they are not able to reclaim the VAT element unless the employee themselves is VAT registered (which is unlikely).

#5C. Second Phone

Woman uses business and personal phone at the same time

Want to own more than one phone? It’s always nice to swap between work and play. 

As stated prior, a business can only issue one tax-free phone per employee. However, if an employee wishes to take a second phone (say, for a family member), then all costs & bills can be claimed against the business. Please note that this second phone is still subject to a “Benefit in Kind” charge.

If an employee pays tax at the basic rate, this equates to a 20% tax, ergo a 20% saving on VAT for the business. Additionally, “Benefit in Kind” is preferential to income as there is no National Insurance paid on “Benefit in Kind” by the employee.

#6. Response Time

Graphic of hand holding a stopwatch with email response time
(Image credit: emailanalytics)

Regardless of whether you’re a big or small business owner, your phone is everything; your main point of contact, your contact storage, GPS, product demonstration or presentation tool, and much more. As such, you want to make sure it’s always working & in good condition.

After all, you never want to miss that important company call, lose a potential lead, or draw the image of your company into question because your phone is lost or damaged. 

This is where having a business contract is good for you, here are the two main reasons:  

#6A. Priority UK Customer Service 

Female customer service support answers a UK business call alongside team members

Got an issue with your handset or tariff? Skip the consumer service line and have your queries solved in no time with a business account.

Additionally, the four main networks all locate their business customer service teams in the UK which provides a better experience for customers.

Most importantly, with, you’ll benefit from a personal account manager so there’s no waiting in line at all, ever! You can even WhatsApp or email them directly, so you don’t even need to call – So easy! 

#6B. Insurance

Business Contracts vs Personal Benefit 13 - Insurance infographic

Most UK business contracts offer insurance contracts with faster replacement services to guarantee no loss of productivity. For example, Vodafone offers a 4-hour replacement service with a £10 per hour penalty fee if they are late… It’s always good to know!  

#7. Warranty

Businessman signs on to business contract

A standard mobile phone comes with one year of the manufacturer’s warranty. However, if the phone is purchased with a business phone contract, the network will often offer a second year of warranty for free. 

Some networks also offer a next-day replacement on business contracts under warranty. For example, the EE Network offers corporate customers a lifetime warranty with next-day replacement.

#8. Contract Buy-Out

Business Contract vs Personal Contracts Benefit 15 - Graphic of man signing agreement for contract buy-out
(Image credit: RMCAD)

No more waiting until the end of your contract to benefit from a more cost-effective tariff or a newer handset! ‘Contract Buy-Out’ is when your supplier is willing to pay your early termination fee or part of your remaining phone payment balance when you switch networks. offers ‘Contract Buy-Out’ up to 6 months before the end of the contract on all new business customers. Contact us today to learn more.

#9. Travelling Abroad

Graphic of worldwide international travel with each major monument including Big Ben, Eiffel Tower, Cristo Redentor, Statue of Liberty, and more.

Do you need to travel abroad, call international or premium numbers for work? Big and small business contracts can be easily customisable, and features can be added to fit your needs. This includes data roaming, international calls, minutes & more.

#10. Virtual Landline

Benefit of a Busines Contract - Virtual landline or "VoIP" for Business
(Image credit: GetVOIP)

As a common opinion, any organisation with a landline feels more established. But what if you’re not there to pick up the phone when it rings? A great benefit of a business contract is that you can benefit from a virtual landline number that rings on your mobile phone. 

Furthermore, this acts as a virtual switchboard allowing you to transfer callers to colleagues or to add extra features such as auto attendant (voice menu system) or even call routing (automatic call distribution). 

For example, “One Net Anywhere” offers a virtual landline number that rings on your mobile, and when you make a call, you can set your landline number as your caller ID. Learn more about virtual landlines – read our post on VoIP for Business now.

Looking for an alternative? See our post on using WhatsApp for Business!

#11. Business Support

Group of business employees supporting eachother in a group handshake

When you take out a business contract you can benefit from support for your business that is unavailable elsewhere.

For example, Vodafone offers additional services at a small charge to support HR & Legal issues for your small business. On our side, we provide free tutorials on using your device and the best apps for business. 

#12. Kit Funds

Handset fund for business graphic showcasing saving money for a smartphone

Occasionally you want to benefit from a lower-line rental contract, but you are perfectly happy with your current phone. If your priority is to save money NOW, you can delay the purchase of a new device via a “Kit Fund”.

At, we exclusively offer business customers kit funds. Make the most out of all these benefits & save money – contact us today to get started.

Looking for something other than a mobile phone? See our selection of business laptop deals, or browse our list of the 5+ best tablets for business now. Otherwise, see our latest post on the Best Android Mobile Phones of 2024.

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