Self-employed and working from home? Check the £10, £18 and £26 monthly rates
Published 27 October 2026. A practical guide to existing GOV.UK rules checked today.
Running your business from the kitchen table or a spare room? Home-working expenses deserve a place on your tax preparation checklist. Start with your business structure, hours and records rather than assuming everyone can claim the same amount.
Who can use simplified expenses?
Sole traders and partnerships without corporate partners can use this optional method. Limited companies cannot. These are self-employment rules: an employee or limited company director needs a separate assessment.
The monthly rates
Business use of your home for 25–50 hours a month gives a £10 flat rate; 51–100 hours gives £18; 101 hours or more gives £26. Below 25 hours, this method is unavailable. Telephone and internet costs are outside these rates: calculate their business share using actual costs.
Should you compare actual costs?
Alternatively, calculate a reasonable business share of actual household costs, using factors such as room usage and time. An expense deduction reduces taxable profit; it is not a matching cash payment from HMRC. If you use the £1,000 trading allowance, you cannot also deduct business expenses.
A practical record-keeping routine
Keep a monthly log of hours spent working at home. File household bills separately and write down how you calculated business use. Avoid copying a friend's claim: their working pattern and use of the property may differ from yours.
For a useful comparison, bring your hours and household bills to a ZipTax consultation. We can discuss the appropriate calculation method and identify any missing information before you prepare your return. Any tax effect depends on your circumstances.
