Working from home simplified expenses: flat rates for self-employed 2025/26
Summary
Updated May 2026 — Sources: GOV.UK simplified expenses, HMRC HS222.
HMRC offers flat-rate simplified expenses for self-employed people working from home. No receipts needed — just record your weekly business hours at home.
1. Flat rates by hours worked
| Hours/week at home | Flat rate | Annual cost (52 weeks) |
|---|---|---|
| 25–50 hours | £6/week | £312/year |
| 51–100 hours | £10/week | £520/year |
| 101+ hours | £26/week | £1,352/year |
2. Actual cost method
Calculate the business proportion of household costs: mortgage interest (not capital), rent, council tax, gas, electricity, insurance, and repairs. Apportion by number of rooms used for business and percentage of time.
3. Comparison example
Freelancer working 60 hours/week from a dedicated spare room. Simplified: £10 × 52 = £520/year. Actual costs: 1/4 of £2,400 annual utilities + 1/4 of £1,800 council tax = £1,050/year. Actual method wins but requires detailed records.
4. Record-keeping for simplified
No receipts required. Keep a simple log of weekly hours worked at home. HMRC may ask for this during an enquiry. You cannot switch between simplified and actual costs year to year for the same expense type.
5. Sources
FAQ
What are the simplified home working rates?
£6/week for 25–50 hours, £10/week for 51–100 hours, £26/week for 101+ hours. Claim the rate matching your average weekly business use of home.
Can employees use simplified home working expenses?
No. Simplified expenses for home working apply to self-employed taxpayers only. Employees must use the separate £6/week working from home tax relief (if eligible) or claim via their employer.
Simplified vs actual costs — which is better?
Simplified is easier and needs no receipts. Actual costs (mortgage interest, council tax, utilities apportioned by room/time) may yield higher deductions if you have a dedicated home office.