If you work from home you may already be aware that you can claim the cost of doing so. However, are you aware of the Simplified Expenses Flat Rate method?
This method is simple and easy to use and significantly reduces the administrative burden of claiming home office costs and the associated documentation. This method removes the need to separate private and business use, which can often be quite difficult in practice.
The method allows you to calculate your allowable expenses through the use of a flat rate based on the number of hours you actually work from home each month.
The following table stipulates the allowable expense associated with each category of hours worked:
Hours worked Monthly Rate
25 to 50 £10
51 to 100 £18
101 and more £26
1. You can only use the Simplified Expenses Method if you work from home for 25 hours or more.
2. The flat rate doesn’t include telephone or internet expenses and these must be claimed by separating and removing any private use.