The HMRC (Her Majesty’s Revenue and Customs) allows you to claim certain expenses related to the use of your home for work purposes. These expenses can be claimed as a deduction from your taxable income, which can reduce the amount of tax you have to pay.
The following expenses are allowable for the use of home according to the HMRC:
Simplified method of claiming expenses
| Hours of business use per month | Flat rate per month |
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 or more | £26 |
Actual expenses
If you prefer, you can claim the actual expenses you incur for using your home for work purposes. This includes expenses such as:
- Heating and lighting
- Water rates
- Council tax
- Rent or mortgage interest
- Internet and phone bills
- Depreciation of furniture and equipment
To claim actual expenses, you will need to keep records of your expenses. This includes receipts, invoices, and bank statements. You can also use a spreadsheet to track your expenses.
There are some expenses that are not allowable for the use of home. These include:
- The cost of buying or decorating your home
- The cost of travel to and from work
- The cost of meals and refreshments
- The cost of entertainment
If you are unsure whether an expense is allowable, you should check with us.
Here are some additional things to keep in mind when claiming expenses for the use of home:
- You can only claim expenses for the part of your home that you use for work purposes.
- You cannot claim expenses for any time that you use your home for personal purposes.
- You must keep records of your expenses to support your claim.