Home office costs

Partial

If you do some of your business admin from home (invoicing, quotes, emails), you can claim a proportion of household costs. The simplest method is HMRC's flat rate, but you must work at least 25 hours per month from home to use it: £10/month (25-50 hours), £18/month (51-100 hours), or £26/month (101+ hours). Alternatively, calculate actual costs based on the proportion of rooms and time used for business. The flat rate does not include telephone or internet. Claim those separately on actual business use.

Key thresholds

Flat rate (minimum 25 hrs/month): £10/month (25-50 hrs), £18/month (51-100 hrs), £26/month (101+ hrs). Actual method: proportionate share of mortgage interest/rent, utilities, council tax.

Common questions

I do my quoting and invoicing from home. Can I claim anything?

Yes. Even occasional admin use qualifies. Use the flat rate (minimum £10/month) for simplicity, or calculate your actual costs.

I have a dedicated room I use only for my business. Can I claim more?

Yes. Actual costs based on that room's proportion of the total house are deductible. But be careful: exclusive business use of a room can trigger Capital Gains Tax on that proportion of the property when you sell.

What does the flat rate come to for an hour or two of admin most evenings?

Call it 50-plus hours a month and you are in the £18 band: £216 a year with no bills maths at all. At 25 to 50 hours it is £10 a month, £120 a year. Below 25 hours a month the flat rate is not available; use the actual-costs method instead.

Watch out for

Exclusive business use of a room can affect Capital Gains Tax relief when you sell your home. Mixed-use rooms avoid this.
If you rent, check your tenancy agreement. Some prohibit business use.
The flat rate does not cover phone or internet. Claim the business share of those separately.

Common mistakes

Using the flat rate under 25 hours a month of home working. It is not available below that; actual costs still are.
Assuming the flat rate covers everything. Phone and internet are outside it and claimable separately.

Cash basis vs traditional accounting

The flat rate and the actual-costs method both work the same on cash basis and traditional accounting. Whichever method you use, the claim is a day-to-day expense in the period it covers.

Exclusive business use of a room may affect Capital Gains Tax. Take advice before claiming on this basis.

HMRC sources

https://www.gov.uk/expenses-if-youre-self-employed https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home

Last verified: August 2026 · Tax year 2026/27

Related guides and tools

Self-employed tax, explained Self-employed tax calculator

Related expenses

Phone and internet costs Mobile phone costs

Track home office costs in TrameStart free

This guidance is for general information only. Tax rules change. Verify with HMRC or a qualified accountant before filing.

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