Claiming Work-from-Home Expenses in 2026: What HMRC Actually Allows

Working from home is still common in 2026 — but HMRC’s approach to expense claims is now stricter and more digital than ever.

With Making Tax Digital expanding and compliance checks increasing, it’s more important than ever to claim correctly.

Here’s exactly what HMRC allows in 2026 — and what could trigger penalties.

🏠 If You’re Self-Employed (Sole Trader)

You can claim home-working expenses using one of two methods:

Option 1: Simplified Flat Rate (Low Risk, Easy)

If you work from home at least 25 hours per month:

• 25–50 hours → £10/month

• 51–100 hours → £18/month

• 101+ hours → £26/month

This method is simple and safe — ideal if you don’t want complex calculations.

Option 2: Actual Cost Method (Higher Potential Claim)

You may claim a proportion of:

• Rent or mortgage interest

• Council tax

• Gas & electricity

• Water

• Home insurance

• Broadband

Your claim must reflect:

• Number of rooms used

• Time used for business

Example:
1 room out of 5 = 20% eligible claim (adjusted for business usage time).

⚠️ Exclusive business use can create capital gains tax risks later — something many overlook.

💻 Equipment You Can Claim (2026)

You can usually claim 100% of:

• Laptops & monitors

• Office furniture

• Business software

• Printers

• Business phone use

Provided it’s wholly and exclusively for business.

👨‍💼 Limited Company Directors (2026 Rules)

You can:

✔ Claim £6 per week (£312 per year) without evidence
OR
✔ Reimburse actual apportioned costs (with records)

More advanced structures (like charging rent to your company) should be handled carefully to avoid CGT implications.

👩‍💻 Employees Working from Home in 2026

Important:

COVID-era relaxed rules are fully gone.

You can only claim if:

• Your employer requires you to work from home

• You are not reimbursed

Choosing hybrid working does not qualify.

This is one of the most misunderstood areas in UK tax right now.

⚠️ What HMRC Is Cracking Down On in 2026

With expanded digital monitoring:

• Overstated percentage claims

• Claiming personal broadband as 100% business

• Claiming full mortgage costs

• Inflated “exclusive use” claims

HMRC is increasingly using digital data cross-checking under MTD.

Incorrect claims can lead to:

• Repayment demands

• Penalties

• Interest

• Full compliance reviews

📱 Why Getting It Right Matters More in 2026

Making Tax Digital is expanding across more businesses.

This means:

• More frequent submissions

• More visible expense patterns

• Less room for estimation errors

Accurate record keeping is no longer optional — it’s essential.

🟢 How Rebate My Tax Keeps You Compliant

Using the Rebate My Tax app, you can:

• Track home-working hours

• Log bill percentages correctly

• Avoid risky overclaims

• Submit accurately under MTD

• Speak directly to a UK accountant

No guesswork. No penalties. No stress.

Final Advice for 2026

If you work from home and aren’t claiming — you’re losing money.

If you’re guessing what to claim — you’re risking penalties.

The safest approach is structured, compliant claiming backed by digital records.

Download the Rebate My Tax app and get it done properly.