How Much Can You Claim for Using Your Home as an Office?

If you’re running a Limited Company and working from home, you may be wondering: How much can I claim for using my home as an office?

In this blog we break down HMRC rules, tax-efficient options, and how to calculate your allowable business expenses when working remotely.

Can You Claim Expenses for Working From Home?

Yes. If you use your home as an office, HMRC allows you to claim a portion of your household expenses through your Limited Company.

There are two main options:

1. Flat Rate (Simplest Option)
   HMRC currently allows a fixed claim of £6 per week (£26 per month) for using your home as an office.
   • No receipts are required
   • No justification is needed
   • It’s accepted as a fair allowance for additional household costs
2. Apportioned Costs (Higher Claim Option)
   If your actual expenses are higher, you can claim more—but you’ll need evidence.
   This requires calculating a reasonable portion of your household bills that relate to business use, and your Client Director will be able to assist you with this.

How to Justify a Higher Claim

To claim more than £6 per week, you’ll need to calculate an apportioned expense based on your actual home office use.

A common formula looks like this:

B + (D% x C) x E = F divided by A

Where:

• A = Total rooms in the home (excluding bathrooms & hallways)
• B = Rooms used solely for business
• C = Rooms used partly for business & partly personal
• D = Percentage of time room is used for business
• E = Total household costs (mortgage interest, rent, utilities, water, buildings insurance, etc.)
• F = Allowable claim

What Expenses Can You Include?

When calculating apportioned home office expenses, you could include:

• Rent or mortgage interest (not full mortgage payments)
• Utilities (such as gas, electricity, water, sewerage)
• Broadband and phone (if used for business)
• Buildings insurance
• Heating and lighting costs

Important Tax Considerations

Before making large claims for home office use, keep in mind:

• Capital Gains Tax (CGT): If a room is used exclusively for business, it may impact Private Residence Relief when you sell your home.
• Business Rates: A substantial home office may trigger local business rates. Your Client Director will be able to advise you on this.
• HMRC Enquiries: Claims above the £6/week flat rate must be backed with evidence and calculations.

Always check with your Client Director before submitting higher claims to ensure compliance with HMRC rules.

Summary: What’s the Best Approach?

• If you want simplicity: Claim the HMRC flat rate of £6 per week.
• If your costs are higher: Calculate apportioned expenses using actual household bills.

Working from home offers tax relief opportunities, but the right approach depends on your business setup and property use.

Speak with your Client Director to confirm which method works best for your Limited Company.