North Devon Accounts can help you claim home office expenses correctly, ensuring you receive the tax relief you are entitled to while keeping your records compliant.
If you run your business from home, you may be able to claim part of your household costs as a business expense. This can reduce your taxable profit and lower your tax bill.
What can you claim?
Depending on your circumstances, you may be able to claim a proportion of:
- Rent or mortgage interest
- Gas and electricity
- Council tax
- Water rates
- Broadband and phone costs
Any claim must reflect the amount of business use compared to personal use.
Two ways to calculate your claim
Actual costs
You can work out a fair percentage of your household bills based on how much of your home is used for business and how often it is used.
This method can produce a larger claim, although it requires good record keeping.
Simplified expenses
HMRC also offers a flat-rate method for self-employed people working from home:
- 25 to 50 hours per month: £10
- 51 to 100 hours per month: £18
- 101 hours or more per month: £26
This approach is straightforward and reduces the amount of calculation required.
Why it matters in 2026
As Making Tax Digital continues to reshape record keeping for many businesses, keeping accurate expense records throughout the year is becoming increasingly important.
Even modest home office claims can make a difference over time. The key is ensuring that the figures are reasonable, supported and correctly reported.
Unsure what you can claim?
North Devon Accounts can help you review your expenses, identify allowable claims and keep your records organised throughout the year.
Contact us today to discuss your business expenses and ensure you are claiming everything you are entitled to.
