Working From Home Expenses Calculator
Enter the hours you work from home each month. The flat rate is added up for the year, with your phone and internet share, and compared with the costs you work out yourself.
This is an estimate and not advice. This is for people who are self-employed or in a partnership. It does not cover employees. Income Tax only, with no allowance for National Insurance.
Worked examples
Steady 80 hours a month
80 hours in each of 12 months
£216 for the year
£18 a month for 12 months. Add £100 for phone and internet to claim £316, which saves £63.20 at the 20% rate.
A seasonal job
30 hours for 6 months, 120 hours for 6 months
£216 for the year
6 x £10 = £60 and 6 x £26 = £156.
A month on the edge
24 hours, 25 hours and 51 hours
£0, £10 and £18
Under 25 hours the flat rate cannot be used. Exactly 25 hours earns £10, and 51 hours moves up to £18.
About Working From Home Expenses Calculator
If you work from home as a sole trader or in a partnership, you can claim part of the cost of heating, lighting, power and water as a business expense. HMRC offers a simple way to do it: a flat monthly amount based on the hours you work at home. It saves you from working out a share of every bill, and HMRC accepts it without receipts.
The flat rate is £10 a month for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more. Under 25 hours in a month you cannot use it. It does not include telephone or internet costs, so you claim the business share of those separately. Because the hours change from month to month, this calculator takes each month from April to March, adds up the flat rate and your phone and internet share, and compares the total with any figure you have worked out for the actual extra costs. It also shows the Income Tax the claim saves at your rate. It is for the self-employed and does not cover employees.
How to use Working From Home Expenses Calculator
- Enter the hours you work from home in each month of the tax year, or fill every month with the same number.
- Enter the business share of your phone and internet for the year.
- If you have worked out your actual extra costs, enter the yearly total.
- Read the flat rate claim, the best claim and the Income Tax it saves.
Common uses
- Preparing the expenses on a Self Assessment return
- Choosing between the flat rate and actual costs
- Estimating the tax saved by working from home
- Keeping a record of the hours behind each month
Frequently asked questions
What are the flat rates for working from home?
£10 a month if you work 25 to 50 hours at home, £18 for 51 to 100 hours and £26 for 101 hours or more. You must work at least 25 hours in the month.
Are phone and internet included?
No. The flat rate does not include telephone or internet costs. You can claim the business share of those on top, based on the actual cost.
Can I use actual costs instead?
Yes. You can work out the business share of your actual household costs and claim that. Use whichever is higher, and keep the bills if you claim actual costs. You can change method from year to year.
Does this apply to employees?
No. This is the simplified expenses method for the self-employed. If you are an employee, speak to your employer or check the current GOV.UK guidance on working from home costs.
Does it count hours I work in the evening?
Yes, if you are doing business work at home. Keep a simple log so that you can show how you arrived at each month.