Home office allowance calculator
Updated
If you are self-employed and work from home, you can deduct either HMRC's flat rate (£10, £18, £26 a month, by hours worked at home) or a fair share of your actual household costs. Enter your hours and costs to see which is larger and what it saves in income tax.
Not financial advice. General information using HMRC rates for the current tax year (2026-27); your position may differ.
Business hours only. Below 25 hours a month the flat rate gives nothing.
Count rooms of similar size; leave out bathrooms, kitchens and hallways if you prefer, as long as you are consistent.
Usually only claimable for a part of the home used solely for business. Leave at 0 if the room is also used privately.
National Insurance (Class 4) falls too if your profits are above its lower limit. Not shown here.
Not financial advice. General information using HMRC rates for the 2026-27 tax year; your position may differ. Reviewed 30 October 2026.
Flat rate against actual costs
The flat rate steps up with hours worked; the actual-cost claim does not depend on hours here.
- Flat rate
- Actual costs
Worked example
A sole trader working 60 hours a month at home for twelve months can claim £216 at the flat rate. Using 1 room of 6 for 5 days a week, with £2,400 of heating, electricity and water a year, the actual-cost claim is £286. The larger, £286, saves £57 of income tax at the basic rate.
How it works
- The flat rate depends only on business hours worked at home in each month: £10 for 25 to 50 hours, £18 for 51 to 100 hours, £26 for 101 hours or more.
- The actual-cost method takes a share of household bills: the share of rooms used for work, times the share of the week they are used.
- You can use one method or the other for the year, not both. Phone and broadband business use can be claimed separately with either.
- The tax saved is the claim times your income tax rate.
Which method suits whom
The flat rate needs no bills and no apportionment, only a record of hours, which makes it attractive for anyone working a modest number of hours from a shared space. The actual-cost method takes more work but often gives more where heating and electricity bills are high, a whole room is set aside, or the business uses the home most days. If a room is used only for business, a share of mortgage interest or rent and council tax can also be claimed, but exclusive business use can have capital gains tax consequences when the home is sold, so take advice before relying on it.
Who can use the flat rate
Sole traders and partnerships made up only of individuals. It is not for limited companies: a director working from home is an employee of the company, and different rules apply, usually through the company reimbursing costs. Landlords cannot use it for a property business either.
Keeping records
For the flat rate, a simple log of hours worked at home each month is enough. For actual costs, keep the bills and a note of how you worked out the proportions. HMRC expects the basis to be reasonable and consistent from year to year.
HMRC flat rates for use of home
| Business hours at home in the month | Flat rate a month |
|---|---|
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 or more | £26 |
Source: ITTOIA 2005 s94H, inserted by Finance Act 2013 Sch 4; HMRC BIM75010. Fewer than 25 hours in a month gives no flat-rate claim for that month.
Want this worked out on your real numbers?
This page works on the figures you type. CoreFi can track your income, spending and tax position from the accounts you connect, on the same HMRC rates. It does not give tax advice.
Track your own numbersFrequently asked questions
How much can I claim for working from home if I am self-employed?
Either the flat rate (up to £26 a month, £312 a year) or a reasonable share of your actual household costs, whichever you choose for the year.
Can I claim both the flat rate and actual costs?
No, not for the same costs in the same year. You can still claim the business share of phone and broadband separately with either method.
Can a limited company director use this?
No. The flat rate is for sole traders and partnerships of individuals. A company can reimburse a director's or employee's extra costs of working from home under different rules.
Is this financial advice?
No. It is general information using HMRC rates for the current tax year, and your position may differ.
More tax calculators
Not financial advice. This calculator gives general information using HMRC rates and thresholds for the 2026-27 tax year. It is not tax, legal or financial advice and does not take account of your circumstances; for advice, speak to a qualified accountant or tax adviser. CoreFi is a trading name of JG Core Ltd (company 16218779). Figures reviewed 30 October 2026.