Claim £26/Week Working From Home Tax Relief Without Keeping Records

What Is the Simplified Expenses Scheme for Home Working?

If you run your business from home as a sole trader or freelancer, you can deduct a portion of your household costs — things like heating, electricity, and broadband — as a business expense. But calculating the exact business proportion of those bills can be time-consuming and complicated.

That's where HMRC's Simplified Expenses Scheme comes in. Instead of working out actual costs, you claim a flat-rate weekly allowance based on how many hours per month you work from home. No receipts, no apportionment calculations — just a straightforward deduction on your Self Assessment return.

The Flat-Rate Amounts for 2025/26 and 2026/27

HMRC sets the flat rates based on your monthly home working hours. The current rates are:

• 25 to 50 hours per month: £10 per month (approximately £2.31 per week)
• 51 to 100 hours per month: £18 per month (approximately £4.15 per week)
• 101 or more hours per month: £26 per month (approximately £6.00 per week)

So the headline figure of £26 per month — not per week — applies when you work from home for 101 or more hours in a given month. Over a full tax year, that adds up to £312 in deductible expenses, with no paperwork required.

Who Can Use the Simplified Expenses Scheme?

This scheme is available to sole traders and business partnerships only. If you operate through a limited company, different rules apply — your company would need to use an actual cost calculation or a formal rental/licence agreement. The simplified scheme is specifically designed for unincorporated businesses.

You must also genuinely use your home for business purposes. The hours you count should reflect real working time — client calls, writing, designing, coding, bookkeeping, and similar business activities all count. Casual email checking alone is unlikely to meet the threshold.

How to Track Your Hours (Without Overdoing It)

You don't need to keep detailed timesheets, but you should have a reasonable basis for the hours you claim. A simple monthly log — even a note in a spreadsheet or diary — recording roughly how many hours you worked from home is sufficient. HMRC may ask you to justify your claim if they open an enquiry, so a basic record gives you confidence and protection.

If your hours vary month to month, you can apply the correct tier for each individual month. For example, if you work 60 hours from home in August but 110 hours in October, you'd claim £18 for August and £26 for October.

How to Claim It on Your Self Assessment Return

When completing your Self Assessment tax return, include the simplified expenses amount in the allowable business expenses section. Specifically, it goes under office costs or use of home depending on how your software presents the categories. If you use HMRC's online return directly, enter the total annual figure you're claiming in the relevant expenses box.

You cannot claim both the flat rate and actual household costs for the same expense category. It's one or the other — so if your actual bills are higher and the proportionate business use would give you a bigger deduction, it may be worth doing the full calculation instead.

Is It Worth Using the Simplified Rate?

For many freelancers and sole traders, especially those renting rather than owning their home, the simplified rate is perfectly adequate and saves valuable time. However, if you work from a dedicated home office and have high household costs, calculating your actual business proportion could yield a larger deduction. Consider running both calculations at least once to see which gives you the better outcome.

The key advantage of the simplified scheme is simplicity and certainty — you know exactly what you're claiming, and there's no risk of overclaiming on complex apportionment calculations.