Work From Home Expense Calculator

Work From Home Expenses

If you work from home, you may be able to claim a portion of your household costs as business expenses.

This can include things like:

• Electricity and gas
• Broadband
• Council tax
• Rent or mortgage interest
• Other household costs

Many people default to using HMRC’s flat rate — which is simple, but not always the most tax efficient option, particularly if you work from home predominantly.

In some cases, calculating the business proportion of your actual household costs can result in a more meaningful deduction.

There are a few different approaches to claiming use of home expenses. The right one depends on your setup.

It’s also important to understand that the rules differ depending on whether you are:

• A sole trader
• A limited company director

For sole traders, you are typically apportioning mixed personal and business household costs based on reasonable use and in line with your workspace.

For limited company directors, the treatment is different and often involves charging rent or a use-of-home agreement between you and your company — which can be more complex.

To help you work through this properly, here are two separate calculators:

• 👉 Use of Home Calculator – for Sole Traders
• 👉 Use of Home Calculator – for Limited Company Directors

These tools provide a structured way to think through the numbers.

As always, the correct approach depends on your individual circumstances, so it’s worth seeking professional advice to make sure your setup is appropriate and compliant.

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