Can I Still Claim Business Expenses if I Work From Home?
You may have seen recently that HMRC has changed the rules around working from home tax relief. From April 2026, employees can no longer claim tax relief for working from home simply because they are required to do so and are not reimbursed by their employer.
However, this change does not affect business owners or sole traders in the same way.
If you run your own business and work from home, you may still be able to claim certain business expenses. Whether you work from a spare bedroom, your dining table or a dedicated home office, some of your household costs could qualify, provided they relate to your business.
Exactly what you can claim depends on whether you are a sole trader or operate through a limited company, as well as the type of expenses involved. Here’s what you need to know.
Can sole traders claim working from home expenses?
Yes, if you are a sole trader, you can claim the business proportion of your household costs, as long as the costs are incurred wholly and exclusively for your business.
This means you can claim expenses that are only directly related to running your business, but if an expense is used for both business and personal reasons, you can usually only claim a portion used for business.
For example, if you use your home internet for both work and personal use, the full cost cannot usually be claimed, and instead, you’d have to reasonably estimate how much of the cost relates to business purposes.
Alternatively, if you meet the qualifying conditions, you may be able to use HMRC’s simplified expenses method. This allows eligible businesses to claim a flat rate based on the number of hours worked from home each month, rather than calculating the exact proportion of household bills.
For some businesses, this is quicker and easier. For others, calculating the actual costs can result in a larger claim.
Can limited companies claim working from home costs?
Yes, if you operate through a limited company, there are several ways to claim the costs of working from home.
One option is to reimburse yourself for allowable household expenses. Another is for your company to pay you a small working from home allowance where the conditions are met.
The most suitable approach depends on your individual circumstances, so it is worth taking professional advice before making a claim.
What home office expenses can I claim?
If you work from home, you may be able to claim a proportion of certain household costs, including:
- Electricity and gas
- Water rates (where applicable)
- Council Tax (in limited circumstances)
- Mortgage interest or rent
- Home insurance
- Broadband and telephone bills
- Cleaning costs for your workspace
For example, if you’re a beauty therapist and have converted a spare bedroom into a dedicated treatment room that is only ever used for your business, you may be able to claim a portion of your household costs.
This claim is generally based on the part of the home used for business and the associated running costs. However, it’s also worth seeking advice, as using part of your home exclusively for business could have other tax implications further down the line.
Can I claim office equipment?
Yes. If you buy equipment that is needed for your business, this is normally an allowable business expense.
Examples include:
- Laptops and computers
- Monitors
- Printers
- Office desks and chairs
- Stationery
- Business software
- External hard drives
Bear in mind that if you also use the equipment personally, you may need to adjust your claim to reflect the business use.
Can I claim tea, coffee and snacks?
This is a question we hear quite often!
Tea, coffee and biscuits for yourself while working from home are generally considered personal living costs, so they cannot usually be claimed as business expenses.
If you buy refreshments for clients during a business meeting, different rules may apply depending on the circumstances.
What can’t I claim?
Not every household cost is an allowable business expense.
Some examples of costs that are usually not claimable include:
- Personal food and drink
- General household groceries
- Personal clothing
- Family TV subscriptions
- Household costs that have no business purpose
The key question to ask yourself is whether the expense was incurred for your business rather than your personal life.
Keep good records
If you are claiming business expenses while working from home, it is important to keep accurate records.
We highly recommend saving your receipts, invoices and bills, and making a note of how you calculated any business proportions. Good record keeping makes it much easier to complete your tax return and provides evidence if HMRC ever asks questions about your claim.
If you’re unsure what you can claim, it’s always better to ask before submitting your accounts. Claiming the right expenses can reduce your tax bill, but claiming the wrong ones could create unnecessary problems later.
At GLX, we help business owners understand exactly what they can and cannot claim. If you work from home and want to make sure you’re claiming everything you’re entitled to, contact our team today.