Working from Home Expenses You Can Claim in 2025–26

Do you work from home?  If you do, either full-time or part-time, you may be eligible to claim certain expenses either against your own taxes or your Limited Company ones.  Many factors will determine what you can claim such as working location, employment status (employee, self-employed, company director), and how much of your home is used for work.

What can I claim as an employee of a company?

You can claim:

A flat-rate allowance of £6 per week (or £26 per month) without needing to provide evidence of expenses. This is the simplest method and can be claimed via your tax code or tax return.

The actual costs (if you don't use the flat rate) which can include a proportion of the following:

• Heating and electricity
• Internet and phone bills
• Water (if it’s metered and usage is clearly work-related)

You cannot claim rent or mortgage interest unless you're self-employed.

These expenses can be claimed via HMRC’s online portal if they have not already been reimbursed by your employer!

What can I claim if self-employed (sole trader or via a Partnership)?

Here you have two options:

1. Simplified Expenses (Flat Rate)

Based on hours you work from home each month:

• 25–50 hours/month → £10/month
• 51–100 hours/month → £18/month
• 101+ hours/month → £26/month

2. Actual Expenses Method

You can claim a proportion of:

• Rent or mortgage interest (not capital repayments)
• Utilities (gas, electricity, water)
• Council tax
• Internet and phone
• Cleaning and maintenance
• Home insurance (if work-related)

You’ll need to work out the percentage of your home used for business, usually by the number of rooms (not including bathrooms, corridors, storage space) or square footage. 

One word of warning is never claim the whole use of a room for business as every room will have duality in use. This is also important if you own your home as a room declared purely an office could attract Capital Gains Tax when the property is sold.  We suggest that any room should only be claimed at 90% for business. And only one room can be used, not a multiple!

These costs should be included on your Self-Assessment tax return.

Can I make a claim for these expenses in my Limited Company?

Yes, you most certainly can. 

At MPower Accounting we not only recommend using the actual expenses method as set out above, we provide our clients with a bespoke spreadsheet to calculate these expenses, and others such as mileage, on a month-by-month basis.  These amounts can then be claimed as expenses to the Company and paid out to you.  It is one of the tax efficient methods of taking money from your business.

Capturing and calculating monthly your regular working from home expenses is the best way of ensuring they are recorded correctly.  To help you do this we are offering a free download of the spreadsheet usually only available to our clients; please use the link below to get this.

Paying taxes is a necessary evil but I am a firm believer in minimising this liability for both individuals and companies.  Correctly claiming working at home expenses is one way to reduce your tax bill.  Please do contact us if we can help you further identifying all the expenses you can claim and also for further assistance in how to correctly use and populate the downloaded template.