How much can you claim for using your home as an office as a limited company director?

If you work from home you can usually expect to incur additional expenses, but did you know that you may be able to claim tax relief on those expenses if using part of your home as an office? 

In this blog we break down the options for the 2025/26 tax year, including flat-rate allowances and actual cost calculations for understanding how much you’re able to claim and the methods available that can help reduce your tax bill. 

Flat-Rate Allowance: You’re able to claim up to £6 per week (£312 annually) without the need of receipts or detailed calculations. 

Actual Cost Method: If you feel that the costs you incur are more than the flat rate allowance of £6 a week, you can look to apportion your household expenses based on the space and time used for business purposes. 

Capital Gains Considerations: Be aware that if you’re using a significant proportion of your home for business it can affect your Capital Gains Tax and other reliefs, so it’s always worth running this past your Client Director for clarification. 

HMRC provides a flat-rate allowance for individuals working from home. For the 2024/25 and 2025/26 tax years, you’re able to claim £6 per week without the need for providing receipts of justification for the amount. £6 per week totals £312 annually. This method provides a very straightforward way of claiming back your expenses when the amount you’re spending for your home office is minimal. 

If your home office space is substantial, you may decide to calculate the actual costs. This process involves apportioning your household expenses based on the space and time your business occupies. For example, if you used one room out of a total of five purely for business purposes, you may be able to claim 20% of your household expenses. Whilst this may sound appealing, it’s important to understand that this method requires detailed record keeping and receipts and that not all household expenses can be included within the calculation. For example, fixed costs can’t be included because HMRC argue that these would be incurred for your primary residence whether you worked from home or not. However, variable expenditure such as heat and electricity can be claimed.  

See our blog here which shows an example of a calculation you could use to justify an enhanced claim.  

If you’re using a significant area of your home for business use, it could potentially affect your eligibility for Capital Gains Reliefs, such as Private Residence Relief. It’s essential to consider these potential implications before putting in any significant home office expense claims.  

Claiming home office expenses help to reduce your overall tax bill, but it’s crucial to understand the different methods of doing so, and choosing the correct one that best suits your situation.  

Ensure to always keep detailed records of usage, and to keep in touch with your Client Director who can offer guidance on claiming expenses for your home office.