The short version: The Home Office Allowance is a flat rate you can claim if you’re self employed and work from home. Instead of calculating the exact business proportion of your household bills, you claim a set amount based on the hours you work.
How much can you claim?
It depends on how many hours you work from home each month. The more hours, the higher the flat rate. Check gov.uk for the current rates as they can change. You need to work at least 25 hours a month from home to claim anything.
What does it cover?
The flat rate covers things like heating, lighting, and general household running costs. It doesn’t include phone or internet, so you can claim the business portion of those separately on top.
Is it better than claiming actual costs?
Sometimes. Claiming actual costs means calculating what percentage of your home you use for work and applying that to your bills. It’s more complicated but might give you a bigger deduction if your costs are high. HMRC has a calculator to help you compare.
Who can use it?
Sole traders and most partnerships. Limited companies can’t use simplified expenses in the same way.
Not sure which method works best for your situation? Ask us and we’ll help you figure it out.
