Working From Home Calculator UK

The Working From Home Calculator helps estimate the amount that may be relevant when you use part of your home for work. The calculation depends on whether you are self-employed, an employee receiving reimbursement from an employer or a limited company director working from home.

Enter the information requested by the calculator, such as your working status, monthly homeworking hours, number of qualifying months or reimbursed amount. The calculator automatically applies the appropriate method to the values entered.

The result is an illustrative estimate. It does not confirm that every cost qualifies, calculate an employee claim for non-reimbursed expenses under rules that no longer permit such claims from 2026/27, or replace detailed records where actual costs are used.

How Does the Working From Home Calculator Work?

For eligible self-employed users, the calculator may apply simplified expense rates based on the number of hours worked from home during each month.

For employees and directors, the calculator may estimate the amount an employer can reimburse towards reasonable additional homeworking costs. The tax treatment depends on whether the statutory homeworking conditions are met.

Use figures covering the same period. For example, if you are calculating an annual amount, enter the qualifying homeworking information for each relevant month rather than using one month as though it applied automatically to the whole year.

The calculator estimates the result from the figures provided. It does not determine whether your home is a qualifying workplace, whether an employer is required to reimburse you or whether your actual household costs support a higher payment.

What Do the Calculator Results Mean?

A self-employed simplified expense result represents the flat-rate business expense that may be deducted when calculating taxable trading profit, subject to eligibility.

An employee or director reimbursement result represents an amount that an employer may be able to pay towards reasonable additional household costs without deducting Income Tax or National Insurance, where the relevant conditions are satisfied.

The result is not necessarily the amount of tax saved. For a self-employed person, an allowable homeworking expense reduces taxable profit. The resulting tax effect depends on total profit, other income, applicable tax rates and individual circumstances.

For example, a £200 allowable expense does not usually create a £200 tax refund. It may reduce taxable profit by £200, with the eventual tax effect depending on the taxpayer’s wider position.

What Is an Illustrative Working From Home Calculation?

Illustrative self-employed example: A sole trader works from home for 60 hours a month during eight months of the tax year and 110 hours a month during four months.

The example assumes the person is eligible to use simplified expenses, each month is calculated separately, no duplicated actual household costs are claimed and the stated flat rates apply.

Based on these assumptions, the calculator would estimate a simplified homeworking expense of £248 for the year.

The £248 would generally be treated as a business expense rather than a direct payment from HMRC. It may reduce the trading profit entered into the Self-Employed Tax Calculator, subject to the applicable rules.

How Do Simplified Homeworking Expenses Work for Self-Employed People?

Simplified expenses are available where a self-employed person works from home for at least 25 hours during a month. The amount is calculated separately for each month using the hours worked from home.

The calculator applies the appropriate monthly band to the information entered. Hours should reflect genuine business activity carried out from home.

The simplified rate covers household running costs such as heating, lighting and power. It does not include telephone or internet costs. The identifiable business proportion of telephone and internet bills may be considered separately where supported by the relevant records.

Simplified expenses are optional. A self-employed person may instead calculate the actual business proportion of eligible household costs where that produces a more appropriate result.

Can Actual Homeworking Costs Be Claimed Instead?

The actual-cost method can consider expenses such as heating, electricity, Council Tax, rent, mortgage interest, home insurance and certain repairs, depending on the nature of the cost and how the home is used.

A reasonable apportionment method is required. Factors may include:

• the number of rooms in the property;
• the number of rooms used for business;
• the amount of time the space is used for work;
• the extent of private use; and
• whether the cost increases because of the business activity.

There is no single calculation that applies to every home. Dividing every household bill by the number of rooms may not be appropriate where rooms differ significantly in size or business use.

Actual costs require stronger records than the simplified method. Keep bills, receipts and a clear explanation of how the business proportion was calculated.

Using part of a home exclusively for business can have wider tax implications, including possible effects when the property is sold. In many cases, retaining some genuine private use of the room may help avoid exclusive-business-use issues, depending on the circumstances.

Can Employees Claim Working From Home Tax Relief?

This means an employee cannot use the calculator to create a new HMRC deduction for homeworking electricity, heating or similar household costs incurred during 2026/27.

The restriction applies even where the employee is required to work from home. However, eligible claims may still be possible for previous tax years within the applicable claim time limits.

Employees should not confuse the removal of personal tax relief with employer reimbursement. Employers can still reimburse qualifying additional homeworking costs without deducting Income Tax or National Insurance where the statutory conditions are met.

An employee’s ability to work remotely does not automatically create a right to reimbursement. Employer policies and employment contracts vary.

How Much Can an Employer Pay for Working From Home?

The guideline amount is intended to cover reasonable additional household costs, particularly heating and lighting associated with the work area.

The £6 weekly amount is not necessarily a maximum. An employer may reimburse a higher amount where evidence shows that the employee incurred greater reasonable additional costs because of the homeworking arrangement.

Payments must relate to additional household expenses caused by working from home. Costs that would have been paid regardless of the work arrangement may not support a tax-free reimbursement.

The calculator may estimate an annual employer payment by multiplying the applicable weekly or monthly amount by the qualifying homeworking period. The result does not require the employer to make that payment.

Can Limited Company Directors Use the Calculator?

A limited company is legally separate from its director. Where an eligible director regularly performs company duties from home, the company may reimburse reasonable additional household expenses.

The company may use the weekly or monthly guideline amount where the relevant conditions are satisfied. Higher payments generally require evidence supporting the additional costs.

The reimbursement should be recorded properly in the company’s accounting records. A director should not simply deduct personal household bills from company profit without considering the statutory expense and benefit rules.

Company directors reviewing salary and company costs may also use the Director Salary Calculator for a broader illustration of remuneration-related tax.

Which Homeworking Costs May Be Relevant?

Potential costs can include:

• additional heating and electricity;
• business telephone calls;
• the business proportion of internet costs;
• office supplies used for work;
• reasonable use of household space;
• certain insurance costs;
• eligible repairs connected with the work area; and
• other costs incurred wholly for business or employment duties.

Mortgage capital repayments are not ordinary homeworking expenses. Under an actual-cost calculation, an appropriate proportion of mortgage interest may be relevant for a self-employed business, subject to the applicable rules.

Private costs and expenditure unrelated to the business should not be included. Where a cost has both private and business use, only an identifiable business proportion may qualify.

What Factors Affect the Calculator Result?

• Working status: Employees, directors and self-employed people follow different rules.
• Monthly hours: Simplified self-employed rates depend on hours worked from home in each month.
• Number of qualifying months: Only relevant months should be included.
• Calculation method: Simplified expenses can produce a different result from actual costs.
• Private use: Actual costs may need to be reduced for personal use.
• Employer payments: Employees may receive eligible reimbursement even though personal tax relief is unavailable from 2026/27.
• Evidence: Higher reimbursements and actual-cost claims generally require supporting records.
• Business structure: Sole traders and limited companies account for homeworking costs differently.

The calculator applies the values entered but cannot assess the evidence, legal arrangements or actual use of the property.

What Common Working From Home Calculation Mistakes Should Be Avoided?

Claiming employee tax relief for 2026/27

Employees cannot claim an HMRC deduction for non-reimbursed homeworking household expenses arising from 2026/27 onwards.

Use the calculator carefully when reviewing employee arrangements. The relevant amount may be an employer reimbursement rather than an employee tax-relief claim.

Using one monthly rate for the entire year

Self-employed simplified expenses should be calculated according to the hours worked in each individual month.

If homeworking hours vary, apply the correct band to each month rather than using an annual average that changes the result.

Claiming simplified expenses and the same actual costs

The same household running costs should not generally be deducted twice.

A self-employed person using simplified homeworking rates should not also claim the same heating, lighting and power costs through an actual-cost calculation.

Including all household bills

Working from home does not make every household expense a business cost.

Where actual costs are used, calculate a reasonable business proportion and exclude private expenditure.

Assuming the calculator result is a tax refund

A deductible expense normally reduces taxable profit rather than creating an equal cash repayment.

The tax effect depends on the user’s profit, income, applicable rates and wider circumstances.

What Important Information Should Users Consider?

Self-employed simplified expenses, actual homeworking costs and employer reimbursements follow different rules. Select the method that reflects your working status and circumstances.

Keep appropriate records where actual costs or higher reimbursements are used. Records may include bills, receipts, homeworking agreements, calculations and evidence of business use.

Professional advice may be appropriate where a room is used exclusively for business, substantial property costs are claimed, several people operate businesses from the same home or a company pays rent to a director.

Which Related Calculators May Be Useful?

Self-employed users can enter their reviewed business profit into the Self-Employed Tax Calculator to estimate Income Tax, National Insurance and take-home income.

Users reviewing homeworking costs alongside other expenses can use the Business Expense Calculator to organise broader operating costs.

Limited companies can use the Corporation Tax Calculator after establishing taxable company profit and making any required adjustments.

Employees reviewing their wider tax position may use the Income Tax Calculator, although it does not determine whether a homeworking reimbursement qualifies.

This Working From Home Calculator provides estimates only. The result depends on the working status, hours, period and costs entered. Employees cannot claim an Income Tax deduction from HMRC for non-reimbursed homeworking household expenses arising from the 2026/27 tax year onwards, although eligible employer reimbursements remain possible. Self-employed deductions, company payments, actual costs and simplified expenses are subject to separate rules. Individual circumstances may differ, and professional advice may be appropriate.