2026-27 · Home Office
Home Office Calculator
Compare the HMRC flat rate (£6/week) against the apportioned method using your actual home costs. Find which claim saves more in corporation tax.
Method
Annual deduction
£312
Corp tax saving
£83
Method comparison
CGT reminder
If you use a room exclusively for business, it may reduce your Private Residence Relief on sale. The flat rate method avoids this risk entirely. Seek advice if using the apportioned method for an exclusively-used room.
How it works
- 1
Flat rate (HMRC simplified)
Claim £6/week (£312/year) as a company expense — no receipts needed. Available if you work from home at least 25 hours per month. Reduces corporation tax.
- 2
Apportioned method
Calculate the business proportion of actual home costs: (business rooms ÷ total rooms) × annual running costs. Requires records but can be significantly larger.
- 3
Corporation tax saving
The relief reduces your company's taxable profit. At 19%, every £100 of home office expenses saves £19. At 25%, it saves £25 — more at higher profit levels.
- 4
HMRC reference: EIM32810
The HMRC Employment Income Manual section EIM32810 covers home office expenses for directors. Always use mixed-use rooms to avoid the CGT Private Residence Relief risk.
HMRC sources
Disclaimer: For illustrative purposes only. Actual allowable amounts depend on your specific circumstances. Consult an accountant before making claims.
FAQs
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