Home Office Expenses: What You Can Claim and How to Keep More Money in Your Pocket
Working from home feels normal now, but many people still wonder: can I claim any of the costs I’m paying every month? The short answer is yes. If your home is your main workplace, the tax system lets you write off a share of rent, utilities, internet, and even some furniture. The trick is to keep things simple and stay within the rules, so you don’t end up with a surprise from HMRC.
Which Costs Qualify?
Not every bill is eligible, but most of the everyday stuff can be split between work and personal use. Here’s a quick rundown:
- Rent or mortgage interest – you can claim a proportion based on the rooms you use for work. If you have one dedicated office in a four‑room house, that’s 25% of the rent.
- Council tax and home insurance – same proportion as rent applies.
- Utilities – electricity, gas, and water can be claimed using the same room‑ratio method.
- Internet and phone – if you use the line for work, you can claim the full cost of the business portion. Many people just use a flat 50% split.
- Office furniture – chairs, desks, and shelves are fully deductible if they’re bought solely for work.
- Stationery and consumables – pens, paper, printer ink – claim the exact amount you spend.
Things that don’t count include personal entertainment, groceries, and the portion of your mortgage that pays down the capital. Keep receipts and a simple log of how many rooms you use for work each month; that’s all you need for a solid claim.
Simple Steps to Claim
1. Work out your work‑space proportion. Count the rooms you use regularly for work, then divide by the total number of rooms (excluding bathrooms and kitchens). That gives you a % you’ll apply to rent, utilities, and council tax.
2. Track your bills. Keep digital copies of electricity, gas, water, internet, and phone statements. A folder on your computer works fine – no need for fancy software.
3. Use the flat‑rate method if it’s easier. HMRC offers a simplified allowance of £6 per week for home office use. If your actual costs are lower, the flat rate saves you the paperwork.
4. Enter the figures on your Self‑Assessment. There’s a dedicated “HMRC expenses” section where you plug in the amounts. The system automatically reduces your taxable income.
5. Keep everything for five years. If HMRC asks for proof, you’ll have the receipts and the room‑ratio calculation ready.
Most people find the flat‑rate method easiest, especially if you don’t have a huge office space. If you’re paying a lot of rent or have a dedicated home office, the detailed method can save you more.
Bottom line: claim what you’re allowed, keep a quick log, and you’ll see a nice bump in your after‑tax earnings. It’s not rocket science – just a few minutes of record‑keeping each month can pay off at tax time.
Kieran Lockhart, Mar, 23 2025
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