SA103 box 20 — part of rent, rates, power and insurance costs
Home Office
If you work from home, you can claim a proportion of your household costs. HMRC offers a flat rate (£6/week) or the actual cost method — whichever you choose, be consistent.
What you CAN claim
- Flat rate: £6/week (£312/year) without needing calculations
- Actual method: proportion of mortgage interest or rent, council tax, utilities, broadband based on rooms and hours used
- Dedicated business phone line in the home
- Business broadband (full cost if solely for business)
What you CANNOT claim
- Mortgage capital repayments
- Costs of buying your home
- Costs for rooms not used for business
- Internet if primarily personal use (only business proportion)
Common examples for sole traders
£6/week flat rate home office claimProportion of broadband used for workProportion of gas and electricity for a home office roomProportion of rent for a dedicated home office
Practical tips
- 1
The flat rate (£6/week) is simpler and HMRC-approved — use it unless your actual costs are significantly higher
- 2
If you have a dedicated office room, you may be able to claim a higher proportion
- 3
Claiming actual costs on your home could affect Capital Gains Tax when you sell — get advice
Track home office expenses automatically
Get Sorted categorises every transaction to the right SA103 box — so you never miss a deduction.