Working from home as a sole trader: what you can claim

4 min read

Even if the work happens on site, the paperwork happens at home. You can claim either a flat rate based on hours, or a fair proportion of your household running costs.

The short version

  • Flat rate: £10 a month for 25–50 hours, £18 for 51–100, £26 for 101+ hours.
  • Actual costs: split heating, power, rent or mortgage interest, council tax and broadband by rooms and time used.
  • The flat rate does not cover phone or internet — claim the business share of those separately.
  • You do not need a dedicated office room to claim.

The simplified flat rate

HMRC's simplified expenses let you claim a set monthly amount based on how many hours you work at home: £10 a month for 25 to 50 hours, £18 for 51 to 100 hours, and £26 for 101 hours or more. No receipts, no apportionment.

For most tradespeople doing quotes, invoices and ordering in the evenings, this is the easy option.

Claiming actual costs instead

If you use a large part of your home for the business — storing stock, running an office, prepping work — the actual-cost method can be worth more. Split your bills by the number of rooms used and the proportion of time they are used for business.

Keep the working out. A one-line note explaining the split is usually enough to justify it later.

Phone and broadband

Phone and internet are handled separately from the flat rate. Claim the business share of the bill using a reasonable, explainable split.

Where this comes from

Check your own receipts

ClaimMate reads the receipt, tells you whether it's claimable and why, and keeps a tidy record for your accountant. See the full guide to claiming expenses.

Sort my first receipt

More guides

General information about published HMRC guidance, not tax advice.