Reviewed by RIFT's Quality and Service Manager, Edward Waine ATT

The Home Office Allowance is a tax-free sum that your employer can pay you to help cover any additional costs of working from home, like heating, electricity and internet. This allowance can range from £10 to £26 per month, depending on the hours you work from home. You don't need to provide receipts.

It’s different to the Work From Home Tax Relief, which is a tax relief you can claim directly from HMRC if your employer doesn’t pay the Home Office Allowance. This allows you to reduce your tax bill based on a similar amount of expenses, but you apply for it yourself.

Who can claim the Home Office Allowance?

If you work for yourself and spend a lot of time at home, this is for you! Using a system called simplified expenses, the Home Office Allowance is available to self-employed people who use part of their home for business.

If you work from home, you can claim a flat rate to cover some of your household expenses. It’s a simple way to reduce your tax bill without needing to keep detailed records. Just make sure you’re genuinely using your home for work purposes to qualify.

What counts as working from home?

For HMRC, working from home means using your home as the base for your business activities.
This could be anything from running a freelance graphic design business from your living room, to managing your accounts, making client calls or even just storing business-related stock at home.

If your home is your work hub, even partly – that counts as working from home!

How much is the Home Office Allowance?

The Home Office Allowance lets you claim a flat rate on your tax return based on the hours you work from home each month.

  • 25-50 hours = £10 per month
  • 51-100 hours = £18 per month
  • Over 100 hours = £26 per month

There’s no need to track every penny – just count your hours and claim the corresponding rate. For example, if you work 60 hours at home in a month, you’d claim £18. It’s an easy way to offset those extra home office costs without the stress of keeping receipts.

How to claim the Home Office Allowance

You can claim your Home Office Allowance easily through the HMRC website when you file your Self Assessment tax return. Just include the flat rate that matches your work-from-home hours, and it’ll automatically reduce your tax bill.

Home Office Allowance - FAQs

Can I claim the Home Office Allowance if I occasionally work from home?

If you only occasionally work from home, you might not qualify for the Home Office Allowance. HMRC expects you to use your home regularly and substantially for business purposes. If you’re just popping in and out or working from home a couple of hours a week, it likely won’t count. To claim, you need to meet the minimum hours required each month, which starts at 25 hours.

Can I claim the Home Office Allowance if I rent my home?

Absolutely! Whether you rent or own your home doesn’t matter for the Home Office Allowance. What counts is that you’re genuinely using your space for business purposes. So, if you’re working from your rented flat or house, you can still claim the flat-rate allowance to help cover your work-related costs. Renting won’t affect your eligibility.