Use of home as office allowance for the self-employed
Doing quotes, invoices and admin from home lets you claim some household costs. Most tradespeople use HMRC's flat rate, based on hours worked at home each month.
Checked against GOV.UK on 23 October 2026. General information for sole traders in England, Wales and Northern Ireland, not tax advice. Scottish Income Tax rates are different.
The flat rates
| Business hours at home per month | Flat rate per month |
|---|---|
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 and more | £26 |
You can only use it in months where you work 25 hours or more from home. It doesn't include phone or internet, which you claim separately for the business share.
Worked examples
30 hours every month: 12 × £10 = £120 a year.
8 months at 40 hours and 4 months at 60 hours: 8 × £10 + 4 × £18 = £152.
What counts as hours
Time working on the business at home: pricing jobs, quotes, invoices, chasing payments, ordering materials, bookkeeping. Keep a note of hours per month. If you only do 2 hours of admin a week, you'll usually be under 25 hours a month and can't use the flat rate.
The actual-cost method
Instead, you can claim a reasonable business share of heating, electricity, Council Tax, rent or mortgage interest, based on rooms and time used. It takes more records, and can be bigger if you have a dedicated office.
Compare both with the working from home expenses calculator. See also other expenses you can claim.
To see your own figures, use the January tax bill calculator for the balancing payment and payments on account, or the self-employed tax calculator for a whole-year estimate.
This guide is part of our Self Assessment guides for the self-employed.
Free: The UK Contractor's Cheat Sheet 2026/27
CIS rates, overtime maths, tax dates, mileage, VAT and late payment, on 2 pages. Keep it on your phone or print it for the van.
Frequently asked questions
How much is the use of home allowance?
£10 a month for 25 to 50 hours, £18 for 51 to 100, and £26 for 101 hours or more.
Can I use it if I work under 25 hours a month at home?
Not the flat rate. You could work out actual costs instead.
Does it include phone and broadband?
No. Claim the business share of those separately.
Sources
This guide is general information, not legal, tax or financial advice. Rules and rates change, so check the linked GOV.UK pages for the current position.