HMRC Compliance Tool
Working From Home
Allowance Calculator
Calculate your allowable home office deduction accurately and compliantly.
Your Details
Enter your tax situation so we can calculate the most beneficial allowance for you.
Calculation Method
Choose the method that best suits your situation. You can switch methods each tax year.
| Hours/month | Monthly rate | Annual total |
|---|---|---|
| Under 25 | Not eligible | — |
| 25 – 50 hours | £10/month | £120/year |
| 51 – 100 hours | £18/month | £216/year |
| 101+ hours | £26/month | £312/year |
Annual Household Running Costs
Annual Allowable Deduction
This reduces your taxable profit.
What to Include in Your Self Assessment
Company Director – Working From Home
As a director, you and your company are separate legal entities. There are two main approaches to reclaiming home office costs through the company.
Annual Running Costs (covered by rental agreement)
Annual Company Deduction
Reduces your company's Corporation Tax liability.
How to Claim
Employee — 2025/26 (Final Year)
Employees can still claim for the 2025/26 tax year — the last year this relief is available directly from HMRC. From 6 April 2026 this route closes.
Annual Tax Relief Claim
Deduction from taxable earnings
How to Claim (2025/26 Tax Year)
Who Can Claim Working From Home Allowance?
- Self-employed / sole traders — full flexibility. Can use simplified flat rate or actual costs. Can claim mortgage interest, rent, council tax in proportion.
- Limited company directors — claim £6/week flat rate through the company, or set up a formal rental/licence agreement for higher amounts.
- Employees (2025/26 only) — can still claim £6/week but only if required to work from home. This route closes on 5 April 2026.
- Employees from 6 April 2026 — direct HMRC claims are no longer available. Any relief must come from employer reimbursements.
HMRC Flat Rates at a Glance (2025/26)
What Costs Can Be Claimed (Actual Costs Method)?
You apportion costs on a "fair and reasonable" basis — typically by the number of usable rooms and the proportion of time the space is used for business.
- Gas and electricity (heating and lighting)
- Mortgage interest (self-employed only — not capital repayment)
- Rent (self-employed only — apportioned by room and time)
- Council tax (apportioned)
- Home insurance (apportioned)
- Broadband and phone — business proportion of usage, claimed separately
- Mortgage capital repayments
- Standard broadband contract (only the business-use portion)
Capital Gains Tax Warning
If you claim a room as being used exclusively for business, that portion of your home may lose its Private Residence Relief when you sell. To protect PRR, ensure the room has genuine dual use. HMRC accepts that rooms used for both business and personal purposes retain full CGT relief.
Backdating Claims
You can backdate claims for up to four prior tax years.