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  • tax

    Use of Home as an Office

    The Government guideline is that £4 per week or £18 per month can be claimed for use of home as an office without the need for receipts and evidence of costs.

    £4 x 52 weeks = £208


    £18 x 12 months = £216

    If you wish to claim additional costs then you will be required to keep receipts.

    If you work at home voluntarily

    If you've agreed with your employer to work at home voluntarily - under a "homeworking arrangement" - they may still contribute towards your expenses but don't have to.

    If your employer contributes up to £4 per week (£18 per month) towards your expenses, you won't need to provide receipts.

    If your employer contributes more than £4 per week you will need to be able to show what you've spent to get the tax relief.

    You won't have to pay tax or National Insurance contributions on the amount you receive from your employer (if it is more than £4 per week you must have the receipts to show what has been spent).


    Flat rate/fixed rate claim

    According to its manuals HMRC will not challenge reasonable claims when there is minor use of home. Prior to April 2013 it seemed reasonable to assume that rather than attempt a calculation HMRC would allow at least the same allowance that HMRC allows employees who are homeworking. This has amounted to £3 per week for home working for 2011/12, and £4 per week from 2012/13. This is non-statutory.

    From April 2013 you may claim a fixed rate for use of home. The rate applicable is based on your calculation of the number of hours that you work at any home "wholly and exclusively" for the purposes of the trade.

    No of hours
    worked per month
    per month
    25 to 50 £10
    51 to 100 £18
    101 plus £26

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    Click Here to download the current tax year's abacus Tax Tables pdf booklet

    Click Here to download the previous tax year's abacus Tax Tables pdf booklet


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