If you work from home as a self-employed person or employee, you may be able to claim tax relief for some of your household costs. Compare the simplified flat rate method against the actual costs method to see which saves you more.
Your work situation
Method 1: Simplified Flat Rate
HMRC allows self-employed people to claim a flat rate per hour worked at home, up to 480 hours/year.
Method 2: Actual Costs (apportionment)
Calculate the proportion of your household bills that relate to your work space and time.
Your tax relief comparison
Flat Rate Method
Tax saved
Actual Costs Method
Tax saved
Actual Costs Breakdown
Tip: The flat rate method is simplest but caps at £312/year (480 hours at 10p). If your household bills are high or you use a large part of your home for work, the actual costs method may save you more. Keep receipts and records either way.
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