Simplified flat rates for working from home
| Hours worked at home in the month | Flat rate per month |
|---|---|
| Under 25 | Can't use flat rate |
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 or more | £26 |
How to use this calculator
- Enter the hours you work at home in a typical month, and how many months.
- Add your yearly household bills such as heating, electricity and water.
- Estimate the business share. A common method: divide by the number of rooms, then by the share of time the room is used for work.
How it's calculated
Simplified = flat rate for your monthly hours × months
Actual costs = yearly household bills × business share %
Best = whichever is higher
Worked example
Ella is a self-employed copywriter who works about 120 hours a month from home, all year. Her household bills are £3,000 a year, and she uses one of five rooms for work about half the time (10%).
Simplified = £26 × 12 = £312
Actual costs = £3,000 × 10% = £300
The flat rate gives Ella £312 and needs no bills or sums at tax time. With higher bills or a dedicated office, actual costs could come out ahead.
What this calculator doesn't cover
- Rent, mortgage interest and council tax. These can sometimes be claimed in part, but rules are strict and may affect Capital Gains Tax when you sell your home.
- Employees claiming tax relief for working from home, which uses different rules.
- Living at your business premises, such as a guest house.
Frequently asked questions
Who can use the flat rate?
Self-employed sole traders and partnerships (with individual partners) who work at least 25 hours a month from home.
Can I claim phone and internet too?
Yes, separately. Work out the business share of your phone and internet bills and claim that on top of the flat rate.
What if my hours change month to month?
The flat rate is worked out month by month. This calculator uses an average; for the exact figure, add up the rate for each month.