Small Business Guide
🏠 Free Tool
Home Office Tax Relief Calculator
2026/27
Calculate exactly how much you can claim for working from home. Compare the HMRC flat rate method vs the actual costs method to maximise your tax relief.
👤 Your Business Type
Used to calculate the actual tax saving from your claim
Count only hours you actually work, not just being at home
hrs/month
📐 Choose Your Calculation Method
HMRC's simplified flat rate is based on hours worked from home per month. No receipts needed — just your hours. The rates for 2026/27 are:
| Hours per month | Monthly allowance | Annual allowance |
|---|---|---|
| 25–50 hours | £10 | £120 |
| 51–100 hours | £18 | £216 |
| 101+ hours | £26 | £312 |
Best for: Sole traders who work from home occasionally and don't want to keep detailed records. Simple and low-admin.
Calculate your actual home costs and apportion the business-use proportion. You'll need to keep receipts and records.
Exclude bathrooms, hallways, and communal areas
rooms
Only count rooms used solely for business — a shared room counts as partial
rooms
If you use a shared room (e.g. dining table) for work, what % of the time?
%
£
£
£
£
Enter the full annual cost — the business % will be calculated
£
%
Note: If you own your home, you can claim mortgage interest (not capital repayment) as a proportion of your home costs. Rent is fully claimable on the same proportional basis.
📋 HMRC Flat Rate Reference Table
HMRC's simplified expenses flat rates for working from home (2026/27):
| Hours worked from home per month | Monthly flat rate | Annual allowance |
|---|---|---|
| Less than 25 hours | £0 (not eligible) | £0 |
| 25 to 50 hours | £10 | £120 |
| 51 to 100 hours | £18 | £216 |
| 101 hours or more | £26 | £312 |
Limited company directors cannot use the HMRC simplified flat rate. Instead, the company can pay you a tax-free allowance of £6/week (£312/year) under HMRC's working-from-home allowance for employees — or you can claim actual costs via a rental agreement between yourself and the company.
Disclaimer: This calculator provides estimates for guidance only. HMRC rules on home office expenses are complex and depend on your specific circumstances. The actual costs method requires detailed records and receipts. Always consult a qualified accountant before making claims on your tax return.
🏠 Your Home Office Claim
£0
Annual tax deduction
Method UsedFlat Rate
Annual Deduction£0
Your Tax Rate20%
Actual Tax Saved£0
Monthly Saving£0
Method Comparison
Flat Rate
£0
Actual Costs
£0