Working From Home Expenses: What Can You Claim?
A practical guide to claiming home working costs for the 2025/26 tax year. Based on HMRC published guidance — for general information only, not professional advice.
1. Who can claim?
If you're self-employed or a sole trader and you regularly use your home for business work, you may be able to claim a portion of your household costs as a business expense.
This applies whether you work from home full-time, or just use a room for admin, invoicing, and other business tasks. The key requirement is that you genuinely use part of your home for business purposes on a regular basis.
Note: The rules differ for employees — see section 6 below. Limited company directors who use their home for company work have additional considerations around how to structure the claim.
2. What costs can you include?
The types of household costs you may be able to claim include:
Running costs
- •Heating and electricity
- •Water rates
- •Broadband and phone line
- •Home insurance (business proportion)
- •Cleaning (business areas)
Fixed costs (actual method only)
- •Council tax
- •Mortgage interest (not capital)
- •Rent
- •Building insurance
- •Repairs and maintenance
Check what applies to your situation with our home office expense checker and internet & phone checker.
3. Method 1: HMRC simplified expenses (flat rate)
The simplest approach is to use HMRC's flat-rate deduction based on the number of hours you work from home each month. This avoids the need to calculate proportions of individual bills.
| Hours worked per month | Flat rate per month | Annual equivalent |
|---|---|---|
| 25 to 50 hours | £10 | Up to £120/year |
| 51 to 100 hours | £18 | Up to £216/year |
| 101 hours or more | £26 | Up to £312/year |
Key points: These are the hours you work at home, not total working hours. If you work from home 3 days a week at 8 hours a day, that's roughly 96 hours a month — qualifying for the £18/month rate. You can still claim business phone and broadband costs separately on top of the flat rate.
4. Method 2: Actual costs (proportion)
If your household costs are high, the actual costs method may result in a larger claim. You calculate the business proportion of each bill based on factors like:
- •The number of rooms used for business vs. total rooms
- •The time spent working from home vs. total use
- •A combination of both (often the most reasonable approach)
Example calculation
If you have a 4-room house (excluding kitchen and bathroom), use 1 room as an office, and work from home 5 days out of 7:
- •Room proportion: 1/4 = 25%
- •Time proportion: 5/7 = ~71%
- •Combined: 25% × 71% = ~18% of household costs
If your annual household costs (heating, electricity, council tax, broadband, insurance, rent/mortgage interest) total £12,000, the potential claim would be approximately £2,160.
Compare this with the simplified expenses maximum of £312/year — the actual costs method can be significantly more valuable if your household bills are substantial. However, it requires more detailed record-keeping.
5. Which method should you use?
Simplified expenses may suit you if...
- You want minimal record-keeping
- Your household costs are relatively low
- You only work from home part-time
- You rent your home (simpler to manage)
- You value certainty over optimisation
Actual costs may suit you if...
- Your household costs are high (e.g. London rent)
- You have a dedicated home office
- You work from home full-time
- You're comfortable with detailed record-keeping
- The flat rate would significantly under-represent your costs
If you're unsure, an accountant can help you compare both methods and choose the most appropriate one for your situation.
6. What about employees?
If you're an employee (not self-employed), the rules are different and more restrictive. You may be able to claim working from home tax relief if:
- •Your employer requires you to work from home (not just allows it)
- •There is no office available for you to use
- •Your employer does not already reimburse your costs
Employee flat rate
HMRC allows employers to pay employees up to £6 per week (£26/month) tax-free for working from home, without employees needing to provide evidence. If your employer doesn't pay this, you may be able to claim tax relief on this amount through HMRC. For basic rate taxpayers, this works out to approximately £1.20/week in actual tax saved.
Important: The broad COVID-19 working from home tax relief ended after the 2021/22 tax year. For 2025/26, you must meet the stricter requirements above. Check gov.uk for current eligibility.
7. Common pitfalls
Capital Gains Tax risk
If you designate a room as exclusively for business use, it could lose its private residence relief for Capital Gains Tax purposes when you sell your home. Many advisors suggest ensuring the room has some personal use as well, though this is an area where professional advice is strongly recommended.
Claiming mortgage capital repayments
You can only claim the interest portion of your mortgage, not the capital repayments. This is a common misunderstanding that could lead to over-claiming.
Not keeping records
If using the actual costs method, you need to be able to evidence your household bills and the basis for your business proportion calculation. Keep utility bills, council tax statements, and your working pattern records for at least 5 years.
Double-claiming broadband
If you use simplified expenses, you can still claim business phone and broadband costs separately. But if you use the actual costs method and include broadband in your household costs proportion, you shouldn't also claim it separately — that would be double-claiming. Check our internet & phone expense checker for more details.
Frequently asked questions
Can I claim working from home expenses as self-employed?
If you are self-employed and work from home, you may be able to claim a proportion of your household costs as a business expense. You can use HMRC simplified expenses (a flat rate based on hours worked) or calculate the actual business proportion of your costs. Check HMRC guidance for your situation.
What is the HMRC flat rate for working from home?
HMRC simplified expenses for working from home are based on hours worked per month: 25–50 hours = £10/month, 51–100 hours = £18/month, 101+ hours = £26/month. These rates are intended to cover additional costs like heating and electricity. Always verify current rates on gov.uk.
Can I claim broadband as a business expense?
If you use your home broadband for business, you may be able to claim the business proportion. If you use it 50% for business, you could typically claim 50% of the cost. Alternatively, the simplified expenses flat rate is intended to cover broadband as part of general household costs.
Can employees claim working from home tax relief?
Employees who are required by their employer to work from home (not by choice) may be able to claim tax relief. This can be claimed through HMRC online services or via Self Assessment. The rules changed after the COVID-19 pandemic — check gov.uk for current eligibility.
Can I claim rent or mortgage as a home office expense?
If you use the actual costs method, you may be able to claim a proportion of your rent or mortgage interest (not capital repayments) based on the business use of your home. Be aware that claiming a room as exclusively for business use could have Capital Gains Tax implications if you sell your home. Seek professional advice.
What is the difference between simplified expenses and actual costs?
Simplified expenses use HMRC flat rates based on hours worked — simpler record-keeping but may result in a lower claim. Actual costs involve calculating the precise business proportion of all household bills — potentially a higher claim but requires more detailed records. You can choose either method but should generally stick with it consistently.
8. Important disclaimer
This article is for general information and educational purposes only. It does not constitute professional tax, legal, financial, or accounting advice of any kind. The information is based on our understanding of HMRC published guidance at the time of writing, which may have changed. We make no representations or warranties about the accuracy, completeness, or suitability of this information for your circumstances. Working from home tax claims can have implications for Capital Gains Tax and other areas. Always consult a qualified accountant or tax advisor before making financial decisions. We accept no liability for any loss, damage, or consequences arising from reliance on this content.
Official HMRC references
🔗Simplified expenses: working from home
Official HMRC guidance on simplified expenses for using your home as an office.
Check your home working expenses
Use our free tools to check if your specific expenses may be allowable.