Indietax

Working from Home Calculator — Simplified Expenses 2026/27

Updated for the 2026/27tax year · Last updated

country: "UK" applicableCountries: ["UK"]

If you're self-employed and work from home, you can deduct a flat monthly rate from your profits instead of calculating actual costs. This simplified method requires no receipts and no room-by-room apportionment — just your average business hours per month.

Enter how many hours per month you typically work from home to see your monthly and annual deduction under HMRC's simplified expenses rules. For a potentially larger deduction based on your actual home costs, try the Use of Home Calculator.

Count only hours you spend working on your business, not personal time at home

Reduce if you started mid-year or had a break

Hours/monthMonthly rate
25–50£10/mo
51–100£18/mo
101+£26/mo

Enter your average hours per month above.

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How this calculator works

HMRC's simplified expenses flat rates are fixed amounts that self-employed people can deduct from their profits to reflect the cost of working from home. The rate depends on how many hours per month you use your home for business:

| Hours per month | Monthly allowance | Annual (12 months) | |---|---|---| | 25–50 hours | £10 | £120 | | 51–100 hours | £18 | £216 | | 101+ hours | £26 | £312 |

Below 25 hours per month: No flat-rate deduction is available. You'd need to use the apportionment method (actual costs) if you want to claim anything.

The hours threshold is a monthly average: If some months you work more and some less, count each month independently and apply the appropriate tier. A month where you work 60 hours at home qualifies for the £18 tier; a month where you only manage 20 hours qualifies for nothing. The calculator lets you set a consistent monthly figure — if your hours vary significantly, calculate month by month.

Months in use: The deduction applies only for months where you actually use your home for business. If you started your business part-way through the tax year, pro-rate accordingly by reducing the multiplier from 12 to the number of relevant months.

What you can't claim separately: Once you use the simplified rate for home costs, you can't also deduct heating, broadband, or utilities as separate expenses for that same home. The flat rate covers all of those. You can still deduct directly attributable business costs like a dedicated business phone line or specific equipment.

Comparing methods: The apportionment method divides your total home running costs by the proportion attributable to business use (based on rooms and hours). It requires more records but can produce a meaningfully larger deduction if your home costs are high. The link below opens the Use of Home Calculator for a side-by-side comparison.

Frequently asked questions

Only sole traders and business partners — not limited company directors. If you run your business through a limited company, the company must use the actual cost method (or pay you a home-working allowance, which is a separate calculation). Simplified expenses are designed specifically for unincorporated businesses and partnerships filing Self Assessment.
Yes, but only for the same premises. Once you've started claiming the flat rate for a particular tax year you use it for that whole year — you can't mix methods mid-year for the same expense. The following year you can switch. There's no irrevocable election, so if your actual costs rise significantly you can switch to the apportionment method for a higher deduction.
Per month. HMRC sets the thresholds and rates in monthly terms: 25–50 hours per month gives £10, 51–100 hours gives £18, and 101 or more hours gives £26. Multiply by the number of months you work from home to get your annual claim. Most people work from home for the full 12 months, giving annual claims of £120, £216, or £312.
The simplified rate is intended to cover the additional costs of working from home: a proportion of your heating, lighting, electricity, broadband, and telephone. It does not cover mortgage interest, rent, or council tax — the theory being that you'd incur those costs whether you worked from home or not. If those fixed costs form a large part of your home expenses, the apportionment method (using actual costs) may give a larger deduction.
No. The flat rate is all-inclusive for home costs. You cannot add broadband, utilities, or any other home-running cost on top of the simplified rate for the same home. However, if you have a separate business-only phone contract or a dedicated business broadband line (not your personal broadband used for both), those are directly attributable business costs you can deduct in full regardless of which home-working method you use.
If you average fewer than 25 hours of business use per month, HMRC's simplified rate does not apply — your hours are too low for any tier. You'd need to use the apportionment method (based on actual costs and room usage) to claim anything. Alternatively, keep records and see if some months meet the 25-hour threshold, as you can claim the flat rate only for months where you hit the minimum.
The simplified flat rate covers the home as a whole — you don't need to identify a specific room or calculate its proportion of the property. This simplicity is the main advantage of the method. The apportionment method, by contrast, requires you to work out what fraction of your home is used for business and for how long, which involves more detail but can give a larger deduction.
The simplified rate is predictable and requires minimal record-keeping. The apportionment method can give a larger deduction, particularly if you have a dedicated home office or high household costs. As a rough guide: if your annual home running costs (excluding mortgage capital) are more than a few thousand pounds, and you use a meaningful portion of your home for business, the apportionment method is likely worth the extra paperwork. Use the Use of Home Calculator to compare the two.

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