More business owners than ever before are working from home, whether full-time or just a few days a week. In Crawley and across West Sussex, it’s become the new normal. 

But when it comes to tax time, many self-employed people, freelancers, and small company directors are still unsure: what exactly can I claim for my home office?

At Curve Accountancy, we help local businesses make sense of it all. So in this blog, we’ll walk you through what home office expenses are, who can claim them, and how it all works when it comes to your tax return.

Who Can Claim Home Office Expenses?

There are two main groups of business owners who might be eligible to claim home office expenses:

1. Sole Traders (self-employed individuals)
2. Limited Company Directors

Let’s look at how things work for each.

For Sole Traders

If you’re self-employed and use part of your home to run your business, you can claim some of your home running costs as a business expense. This includes things like heating, electricity, internet, and council tax.

You don’t need a separate room dedicated to work, but you must use the space regularly and significantly for business. 

For example, if you work at your kitchen table every weekday from 9 to 5, that could qualify.

For Limited Company Directors

If you work from home for a limited company (including your own), it’s a bit trickier. You can’t just claim a percentage of your household bills like a sole trader can. 

Instead, there are a couple of options:

• Claim a flat rate allowance (currently £6 per week)
• Charge your company rent if there is a formal agreement in place and the space is used exclusively for business

We’ll go into more detail on these shortly.

What Can You Actually Claim?

Option 1: Flat Rate Method (Sole Traders)

HMRC allows sole traders to use a simplified expenses method based on the number of hours worked at home per month:

Hours Worked Per Month : 25 to 50

Monthly Allowance: £10

Hours Worked Per Month : 51 to 100

Monthly Allowance: £18

Hours Worked Per Month : 101+

Monthly Allowance: £26

This is the easiest way to claim and doesn’t require calculations or bills.

Option 2: Actual Cost Method (Sole Traders)

You can calculate your actual costs and claim a portion of:

• Heating & electricity
• Rent or mortgage interest (not capital repayments)
• Council tax
• Water
• Internet and phone use

You’ll need to divide the total by the number of rooms in your home (excluding kitchens and bathrooms) and then by the amount of time the space is used for business.

Example: If your house has 5 rooms, and you use 1 of them as an office 5 days a week, 8 hours a day:

• £2000/year heating & electricity
• 1/5 of that = £400
• Used 8 hours of 24 = one-third
• Claimable amount = £400 x 1/3 = £133

For Limited Company Directors

1. Flat Rate Allowance

HMRC allows directors to claim £6/week (£280/year) without any records or agreements required. Simple, safe, and well suited for part-time home workers.

2. Rent Your Home to the Company

You can rent part of your home to your company, but this must:

• Be backed by a rental agreement
• Charge a market rate (and show how it’s calculated)
• Be used exclusively for business

The rent becomes a deductible expense for the company, but it also creates taxable income for you personally, so there are pros and cons. You should always take advice before setting this up.

Common Expenses You Can Claim

Whether you're self-employed or running your own company, here are some of the common home-working costs that may be eligible for tax relief:

✅ Claimable (fully or partially):

• Electricity and gas
• Council tax (sole traders only)
• Rent (sole traders only)
• Mortgage interest (sole traders only)
• Broadband (if partly used for business)
• Mobile or landline phone bills
• Office furniture and equipment
• Business insurance
• Cleaning (if the office is exclusively used for work)

❌ Not Claimable:

• Mortgage capital repayments
• Food and drink while working from home
• Personal Netflix/TV licence
• Dual-use rooms (e.g. your bedroom used as a workspace temporarily)

Record Keeping Tips

To stay compliant with HMRC and to make sure you're claiming everything you're entitled to:

• Keep copies of all utility bills
• Take note of how many hours per week you work from home
• Photograph your office space (especially if you’re renting it to your company)
• Use accounting software or a spreadsheet to track and calculate use-of-home costs

If Curve is already doing your books, we can advise on the best method for your circumstances.

Local Example: Freelance Designer in Crawley Down

Let’s say Sarah is a freelance graphic designer who lives in Crawley Down and works from her spare bedroom.

• She uses it 5 days a week, 8 hours per day
• Her total annual home running costs come to £5,000
• She has 5 rooms in her house

Calculation:

• £5,000 ÷ 5 = £1,000
• £1,000 x 1/3 (8 out of 24 hours) = £333

So Sarah could potentially claim around £333 in allowable business expenses for her home office use. 

That might not sound like a lot, but across a few different categories, it adds up, especially when combined with other deductions.

When to Get Advice

Home office expenses can be simple if you stick to the flat rate methods. But if you're:

• Running your business full-time from home
• Thinking of renting your home to your company
• Unsure what method to choose
• Upgrading or investing in a dedicated office

...then it’s worth speaking to your accountant. Making the wrong move could create a tax liability or leave money on the table.

Curve Accountancy: Local Tax Advice That Works for You

If you’re working from home in Crawley or anywhere in West Sussex, Curve can help you:

• Choose the best method for claiming home office costs
• Make sure your claims are HMRC-compliant
• Keep clean records without stress
• Maximise your allowable expenses and reduce your tax bill

We work with sole traders, company directors, and family businesses every day and we speak your language, not HMRC’s.

Need help with home office claims?

Let’s have a chat. Book a free call with Curve Accountancy today and get confident about your claims.