✅ How Much You Can Claim (UK – HMRC)

You have two choices:
1️⃣ Flat rate (simplified expenses)
2️⃣ Actual costs method

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1️⃣ Flat Rate – Simplified Expenses (Easiest)

Based on the number of hours per month you work from home:

Hours per month	You can claim
25–50 hours	£10/month
51–100 hours	£18/month
101+ hours	£26/month

This works out to £120–£312 per year.

✔ No calculations needed
✔ HMRC approved flat rate
✘ You can’t claim telephone or internet with this method (only room usage)

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2️⃣ Actual Costs Method – Usually Gives a Bigger Claim

You claim a percentage of your real household costs based on business use.

You can include:

• Rent
• Mortgage interest (not capital repayment)
• Council tax
• Gas & electricity
• Water
• Home insurance
• Broadband and phone
• Repairs and maintenance (only the business proportion)

How to calculate it

1. Work out the number of rooms used for business
2. Work out the percentage of time it’s used for business vs personal
3. Apply that % to allowable costs

Example:

• 1 room used out of 5
• Used for business 8 hours/day out of 24
• Household bills = £12,000 per year

Calculation:

• Room proportion = 1/5 = 20%
• Time proportion = 8/24 = 33%
• Business use = 20% × 33% = 6.6%

£12,000 × 6.6% = £792 deduction

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Which Method Should You Use?

• If you have small or occasional home working, use the flat rate.
• If you have dedicated workspace, or have high bills, actual costs usually gives a larger deduction.