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Would you spend £2,000 on a phone? Are prices going too high?

ended 23. October 2026

Would you spend £2,000 on a phone? Are prices going too high?

The iPhone Duo is being released on Friday – but is too expensive at £1,999? Does this explain why retail sales are going down in a cost-of-living crisis?

As a small business owner, if you're VAT registered, can you get the VAT back for it if you buy it for work-purposes?

Questions for Newspagers

  1. Is £2,000 for a phone too high? Are retail prices going too high and does it explain why retail sales are struggling?
  2. The iPhone Duo is being released tomorrow – but is it too expensive at £1,999?
  3. Small business owners: if you're VAT registered, can you get the VAT back on it?

3 responses from the Newspage community

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Tony SanchezVerified
Founder at Bridging Loan Directory
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I can see the attraction of having the latest technology, but I’m unlikely to spend £2,000 replacing a phone that already does everything I need.

As a small business owner, my phone is useful, but I’d want to know what that extra spending would actually improve. If the main benefit is simply having the newest model, that’s a personal treat rather than a business necessity.

£2,000 is a substantial purchase, although one premium phone doesn’t explain what’s happening across retail. For me, it comes down to whether the improvement justifies the price. At the moment, keeping a perfectly good phone makes more sense.
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Harvey DhillonVerified
Founder & CEO at Zmartly
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Yes, a VAT-registered business can normally reclaim VAT on a phone bought for taxable business use, with a valid VAT invoice. But check your VAT scheme before counting on a refund. On the Flat Rate Scheme, a single qualifying purchase of capital goods must total at least £2,000 including VAT. A phone at £1,999 misses that by £1, so a Flat Rate business gets no VAT back and pays more, net, than for a £2,000 phone that returns £333. A sole trader using a phone for work and privately can claim the business share. An employer buying a handset to provide to an employee for business use can reclaim the handset VAT even if private use is allowed. A VAT number is not a discount code.
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Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
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£1,999 is a huge amount for a phone. For some people the iPhone Duo will be useful or desirable, but for most households it is firmly a luxury purchase, not an essential upgrade.

I would not say one expensive phone explains weaker retail spending. Consumers are being squeezed across housing, food, energy and borrowing costs, so big-ticket purchases naturally face more scrutiny. If your current phone works, keeping it another year may be the smarter financial decision.

For VAT-registered businesses, VAT can generally be reclaimed to the extent the phone is used for taxable business purposes. If there is personal use, normally only the business proportion is reclaimable and records should support the split.

A £2,000 phone can be a business tool. It can also just be a £2,000 phone. Tax relief should never be the reason you buy something you do not need.