Services Fractional CFO Sectors Tech Advisory Resources Blog Free Calculators About Pricing Get in Touch
Calculator · Tax relief

Use of home allowance calculator: flat rate or actual costs

By James Fitzpatrick, AAT licensed · Accounting Solution · Last reviewed 7 October 2026 · 2026/27 tax year

If you work from home you can claim a share of your household costs against your business profits. Sole traders can use an HMRC flat rate of £10, £18 or £26 a month depending on hours worked, or claim a fair share of actual bills. Company directors can be paid £6 a week tax-free. Answer six short questions and see which method gives you more.

Step 1 of 6

How do you work?

This changes which HMRC rules apply to your claim.

Please choose one of the options above.

How many hours do you work from home?

Enter whichever is easiest — the others fill in automatically.

Please enter your hours in at least one of the boxes above.

Tell us about your home

💡 Use 0.5 if a room is only used for work part of the time — for example a spare room used as an office some days. One more thing: claiming a room as 100% exclusive business use can affect Capital Gains Tax when you come to sell your home. If that might apply to you, it's worth talking it through with us.

Please choose rent or own, enter at least one room, and fill in the work-use field.

Your household costs

Enter what you know — leave anything blank if you're not sure, guesses are fine too.

Your results

Flat rate
£0per week
£0per month
£0per year
Actual costs
£0per week
£0per month
£0per year

This is an estimate for guidance only and isn't a substitute for advice tailored to your situation — we'd be happy to check this properly for you. Figures are based on current HMRC simplified expense rates and a straightforward apportionment of the costs you've entered.

Keep a copy of your results

Get this sent to you so you can refer back to it — or skip straight to talking it through with us.

Please enter a valid email address.

Thanks — check your inbox shortly.

📞 Book a free call to talk it through

Frequently asked questions

Can I claim for working from home as a self-employed sole trader?

Yes. You can either claim a flat rate set by HMRC based on the hours you work from home each month, with no receipts needed, or work out the proportion of your actual household bills that relates to business use and claim that instead. Use whichever gives you the fairer figure.

What are the HMRC flat rates for use of home?

For sole traders and partners, the flat rate is £10 a month if you work from home 25 to 50 hours a month, £18 a month for 51 to 100 hours and £26 a month for 101 hours or more. Below 25 hours a month the flat rate is not available, so you would claim a share of actual costs instead.

Can a limited company director claim for working from home?

Yes. A company can pay a director £6 a week (£26 a month, £312 a year) tax-free towards household costs with no receipts needed. If your real business share of the bills is higher, the company can reimburse a larger amount, but you need records to support it.

Which household costs can I include if I claim actual costs?

A fair share of heat and light, water, broadband, mobile or landline calls, home insurance, council tax and rent or mortgage interest. Which of these you can claim depends on your circumstances, and mortgage capital repayments are never claimable. Only the business proportion of each bill counts.

Is it worth claiming actual costs instead of the flat rate?

Often, when your household bills are high or you use a dedicated room. The flat rate is simpler and keeps you clear of apportionment disputes. The calculator shows both figures side by side so you can see the difference before you choose.

Will claiming use of home affect capital gains tax when I sell my home?

It can. If a room is used exclusively for business, part of the gain on sale may lose main residence relief. Using a room for business alongside normal family use usually does not cause that problem. Speak to us before you claim if you plan to sell soon.

Is this calculator advice, and is my data stored?

It is a free estimate for guidance only, not personal tax advice, and the figures update on screen as you go. Nothing is stored unless you choose to email yourself the results, in which case we receive your email address and the summary.

This calculator gives an estimate for general guidance and is not personal tax advice. Rates are the HMRC simplified expenses rates for 2026/27. See our other free calculators or talk to us about your own claim.