Whether you’re self-employed full-time or run your business alongside other work, your home office comes with running costs. The good news? Some of those costs can be claimed back.

So if you’re asking yourself, “What can I actually claim for when working from home?”, this guide is for you.

Two methods for claiming business-use-of-home

There are two main ways to calculate your home working expenses: the flat rate method and the actual cost method.

1. Flat rate method

This is the simplest option. You don’t have to calculate exact bills, just use HMRC’s flat rate, which depends on how many hours a month you work from home. Here’s the breakdown:

• 25 to 50 hours/month: claim £10/month
• 51 to 100 hours/month: claim £18/month
• 101+ hours/month: claim £26/month

2. Actual cost method

This option involves calculating the business portion of your home’s running costs. You calculate your claim based on how much of your home is used for work and for how long.

You can include things like:

• Rent or mortgage interest
• Council tax
• Utilities (gas, electricity, water)
• Home insurance
• Internet and phone
• Cleaning costs

For example, if you use one room in a five-room house exclusively for work 40% of the time, you could claim 8% of those household expenses.

It’s a bit more work to calculate, but it can lead to a higher and more accurate claim, especially if your home working costs are significant.

Who is eligible?

You can claim business-use-of-home expenses if you’re:

• Self-employed (sole trader or in a partnership)
• A director of a limited company who works from home
• Using part of your home specifically for running your business

However, if you occasionally check emails from your sofa, that doesn’t count. HMRC expects a regular, dedicated space and consistent use to allow a claim.

How much can I claim when working from home?

There’s no fixed amount because it depends on the method you use and your specific situation. The flat rate is straightforward but limited, while the actual cost method depends on your home setup, bills and how much of the space is used for work.

The more accurate your records, the better your claim. So make sure you keep track of:

• Utility bills
• Internet and phone usage
• Days and hours worked from home
• The layout and rooms of your house

If you’re unsure which method will benefit you most, your accountant can help you compare.

7 allowable home office expenses you should be claiming

Here are some common expenses that could be part of your claim:

1. Rent or mortgage interest: Only the interest part of your mortgage qualifies, not the capital repayment.
2. Utilities: Gas, electricity, water, and even lightbulbs can count, based on your business usage.
3. Council tax: You can claim a portion, as long as your home is used regularly for business.
4. Broadband and phone: Claim the business percentage of your phone and internet bills.
5. Office equipment: Desks, chairs, printers and other equipment used exclusively for work.
6. Home insurance: If your policy includes business use or you’ve upgraded for work reasons.
7. Cleaning: If you have someone clean your home workspace, that’s potentially claimable too.

Need help maximising your claimable expenses?

Get in touch with us today. We can help make sure that you’re claiming what you can and are keeping more of what you earn.