Duna Accountancy & Tax
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Can I claim for working from home?

Last updated:
September 9, 2026
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Duna Accountancy & Tax

Yes, but the method depends on how you trade.

Sole traders can use HMRC's simplified flat rate if they work at least 25 hours a month from home. The monthly amounts are:

  • 25 to 50 hours: £10
  • 51 to 100 hours: £18
  • 101 hours or more: £26

The flat rate covers the extra cost of things like heating and electricity but not phone or internet, which you can claim separately based on business use. The alternative is to claim the actual business share of your household costs, backed by the bills. GOV.UK has a simplified expenses checker to compare the two.

Limited company directors cannot use the sole trader flat rates. The usual route is for the company to pay you up to £6 a week (£26 a month) for additional household costs. You do not need receipts, it is not taxable on you, and it is deductible for the company. Since 6 April 2026 employees can no longer claim working from home tax relief from HMRC themselves, so the company paying the £6 is the route that is still open to directors. Mortgage interest, rent and council tax are not claimable this way.

Legislation and guidance: Income Tax (Trading and Other Income) Act 2005, section 94H (use of home, sole traders) and HMRC Business Income Manual BIM75010; Income Tax (Earnings and Pensions) Act 2003, section 316A (employer payments for homeworkers' additional household expenses); section 360B (no employee deduction for additional household expenses from 2026 to 2027).

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