Can I Claim HMRC Self Employed Expenses for a Home Office?

Tax Queen

Tax Expert @ Pie

4 min read

Yes, You Can Claim Home Office Costs

Yes. If you run your business from home, you can claim a fair share of your household running costs as allowable expenses, which lowers the profit you pay tax on.

You can use HMRC's simple flat rate or work out the business share of your actual bills. Both are fine, as long as you don't claim the same costs twice.

Option One: The Flat Rate

HMRC's simplified expenses let you claim a fixed monthly amount based on the hours you work at home. There are no bills to divide up, just a record of your hours.

25 to 50 hours a month: £10 a month
51 to 100 hours a month: £18 a month
101 or more hours a month: £26 a month

For example, if you work 60 hours at home every month of 2026/27, you could claim £18 a month, or £216 for the year. The flat rate does not cover your phone or broadband, so you can claim the business share of those separately.

Option Two: Working Out Your Actual Costs

If your home costs are higher, you can claim a share of the real bills instead. A common approach is to divide costs by the number of rooms, then by the share of time a room is used for work.

Costs you might include are:

Heating and electricity
Council tax
Rent, or the interest part of your mortgage (not the capital repayments)
Home insurance
Broadband and phone calls used for work

Keep a note of how you worked out your percentage. If HMRC ever asks, a simple, sensible calculation is far easier to explain than a guess.

Our guide to declaring business expenses on your Self Assessment explains how these figures fit into your return.

Equipment and Furniture

Items you buy for the business, such as a desk, office chair, laptop or printer, can usually be claimed too. Under the cash basis, which is the default for sole traders and simply means you record money when it actually comes in or goes out, you generally claim them in the year you pay.

If you also use something personally, only claim the business share. A laptop used half for work and half for family would mean claiming 50% of the cost.

How This Fits with Making Tax Digital

If your qualifying income was over £50,000 in 2024/25, you have been in Making Tax Digital since 6 April 2026. This means keeping digital records and sending quarterly updates, with the next deadlines on 7 November 2026, 7 February 2027 and 7 May 2027.

Home office costs simply go into your expense records like any other cost. Quarterly updates are running totals, not tax returns, so if you adjust your home office figure later, you just correct it in the next update.

The threshold drops to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. Our guide to Making Tax Digital for sole traders and landlords covers the full picture.

Common Worries and Mistakes

In online communities, sole traders often say they feel nervous claiming home costs in case it looks suspicious. In reality, claiming a fair, well-reasoned share is perfectly normal and expected.

The mistakes that come up most often are:

Claiming the flat rate and a share of the same heating and electricity bills, which counts the costs twice
Claiming the full mortgage payment rather than just the interest
Claiming the whole bill when the room is also a guest room or family space
Forgetting phone and broadband, which sit outside the flat rate
Not keeping a record of hours worked or how the percentage was worked out

Another worry is setting aside a room only for business. This can affect Capital Gains Tax when you sell your home, so many people keep some personal use of the room. If you are unsure, it is worth checking before you set things up that way.

Remember your 2025/26 online return is due by 31 January 2027. If you feel stuck, our guide to getting help with Self Assessment shows where to turn.

Make Home Office Expenses Easy with Pie Tax

Managing your home office claims doesn't have to be a headache. Pie Tax automatically tracks your income and expenses,categorises your transactions (including WFH costs), and provides a real-time tax estimate so you always know where you stand. When it’s time to report, Pie Tax sends your Self Assessment return and Making Tax Digital (MTD) quarterly updates directly to HMRC.

How to Log Expenses in the Pie Tax App

Logging home office or business expenses in the Pie Tax app takes just a few seconds.

Open Quick Add & Select Expense

Tap the Quick Add (+) icon on the bottom navigation bar and select Add expense under Add manual transactions.

Enter Income Source, Merchant & Amount

Select the relevant Income source (e.g., Freelance Design & Consulting), type in the Merchant name (e.g., Ryman), and enter the Amount (e.g., £19.99). Use the slider if you need to split the cost between work and personal.

Choose Category & Save

Select WFH (or Office) under Expense category, check the Date, and optionally attach a receipt or note. Then tap Finishat the bottom.

Confirmation

A pop-up will confirm Expense added. Tap OK to return to your dashboard or Add another to log more expenses.

Summary & Next Steps

Logging your home office and business expenses in the Pie Tax app keeps your bookkeeping accurate with minimal ongoing effort. By recording expenses as they happen, you ensure no allowable tax deductions slip through the cracks,giving you complete clarity on your tax position and total confidence when filing with HMRC.

Try Pie Tax for free today and make managing your business expenses effortless.