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Working from home allowance calculator

Work out what you can claim for using your home for your business, with HMRC's simplified expenses flat rates, and compare it with a share of your actual household bills. It also covers B&Bs and guesthouses where you live on the premises.

The flat rates

If you're self-employed and work from home for 25 hours or more a month, you can claim a flat rate instead of working out the business share of your bills: £10 a month for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more. The flat rate doesn't include phone or internet; claim the business share of those separately. GOV.UK's example: 40 hours a month for 10 months and 60 hours for 2 months comes to £100 plus £36, so £136 (GOV.UK, checked 15 October 2026).

Count the hours you or anyone you employ spend working at home for the business. That includes paperwork, quoting and answering calls, but not hours spent out on jobs. A tradesperson who does the books in the evenings often reaches 25 hours a month.

If you live at your business premises

For a guesthouse, bed and breakfast or small care home where you live on the premises, simplified expenses work the other way round. You add up the total premises expenses, take off a flat amount for personal use and claim the rest. The flat amount is £350 a month for 1 person, £500 for 2 and £650 for 3 or more. GOV.UK's example: a couple with £15,000 of premises costs take off £6,000 and claim £9,000 (GOV.UK).

Flat rate or actual costs?

The flat rate is simple, but it's small. If you have a room used only for work, the actual business share of heating, electricity, council tax and mortgage interest or rent may be worth more. Simplified expenses are for sole traders and partnerships with no company partners, not limited companies (GOV.UK). Using a room only for business can affect Capital Gains Tax when you sell, so ask an accountant if the sums are large.

See also the mileage allowance calculator, the self-employed tax calculator and the trading allowance calculator. To keep receipts and claims in one place, compare FreeAgent, Xero and Zoho Books. B&B owners: see ChatGPT prompts for B&Bs.

Flat rates from GOV.UK, checked 15 October 2026. Not tax advice.

Questions

How much can I claim for working from home if I'm self-employed?

With simplified expenses, £10 a month for 25 to 50 hours, £18 for 51 to 100 hours, or £26 for 101 hours or more. Or claim the actual business share of your bills.

Can I claim internet and phone as well?

Yes, separately. The flat rate doesn't include them, so claim the business share of the actual bills.

Can a limited company director use the flat rate?

No. Simplified expenses are for sole traders and partnerships with no company partners.

What can a B&B owner claim when they live there?

Total premises expenses minus a flat rate for personal use: £350 a month for 1 person, £500 for 2 and £650 for 3 or more.