Use of home as office calculator

Can I use this calculator in an AI assistant?

Yes. Taxley runs a free Model Context Protocol (MCP) server, so you can add these calculators to Claude, ChatGPT or your own code and ask for a figure in plain English. The assistant gets the same answer as this page, with a link back to the result. There's no key and no sign-up.

How much can a limited company pay for working from home?

A limited company can pay £6 a week or £26 a month without evidence when the director or employee regularly works at home under an agreed arrangement. It can instead reimburse reasonable additional household costs actually caused by that work, but records must support a higher amount (GOV.UK homeworking guidance).

How does this use of home as office calculator work?

In the worked example, twelve monthly periods give a no-evidence amount of £312.00. Recorded additional costs are £480.00, so £168.00 sits above the flat rate. That higher reimbursement needs clear evidence showing reasonable extra household costs caused by regular homeworking.

Which actual homeworking costs can the company reimburse?

The exemption concerns additional household expenses, commonly extra heating, lighting and metered water used because the employee works at home. It does not turn a share of ordinary fixed costs into an automatic reimbursement. The company should keep the homeworking agreement, calculations, bills and a reasonable explanation of the business proportion claimed.

Can a director charge rent to their limited company?

A separate rental arrangement may be possible, but it is not the same as the £6 weekly homeworking payment. Use a written, commercial agreement for genuine business space and a reasonable rent. The director may have property income, and business rates, insurance, mortgage or Capital Gains Tax issues can arise, so consider tailored advice.

What home office records should a director keep?

Keep the company’s written homeworking arrangement, dates worked at home, payments, the method used and any bills supporting additional costs. If using a rental arrangement, retain the agreement and evidence for the rent. Records should distinguish company expenses from personal household spending and avoid claiming the same cost twice.

You can also check business mileage payments and estimate the company’s Corporation Tax.

This calculator provides general information, not tax advice.

Which rules does this calculator follow?

Every figure comes from the rules HMRC and Companies House publish on GOV.UK, and from the legislation behind them. The links below go to the pages we checked when we last reviewed this calculator, so you can read each rule in full and check that it applies to your company.

• GOV.UK: tax-exempt homeworking expenses and benefits
• HMRC Employment Income Manual EIM01476: how much can be reimbursed

Frequently asked questions

Can my limited company pay me £6 a week for working from home?

Yes, if you regularly work at home under an arrangement agreed with the company. The company can pay £6 a week, or £26 a month for monthly paid employees, without asking you to prove the additional household costs. It should still keep a record of the arrangement and payments.

Is the homeworking allowance £312 a year?

It is £6 for each qualifying week, so 52 weeks produces £312. The monthly alternative is £26, also £312 for twelve months. Do not automatically claim a full year if regular homeworking began later, ended earlier or the arrangement did not meet the conditions throughout the period.

Can the company pay more than £6 a week tax-free?

It can reimburse more where records demonstrate reasonable additional household expenses caused by the employee carrying out duties at home. The extra payment is not automatically exempt merely because the director uses a room as an office. Keep bills, a calculation and evidence of the agreed regular homeworking arrangement.

Can I include rent, mortgage interest or council tax?

The employee homeworking exemption is aimed at additional household costs, not an automatic proportion of ordinary fixed costs. A separate rent paid by the company is a different arrangement with possible property-income, business-rates, insurance, mortgage and Capital Gains Tax consequences. It should be commercially supportable and documented.

Does occasional evening work at home qualify?

Occasional or informal work at home is not enough for the employer homeworking exemption. The director or employee should work at home regularly under arrangements agreed with the company. The pattern need not mean every day, but the evidence should show a continuing homeworking arrangement rather than convenience on isolated occasions.

What evidence is needed for actual homeworking costs?

Keep the written homeworking arrangement, household bills, dates or working pattern, the cost calculation and company payment records. The calculation should identify extra costs caused by work and use a reasonable business proportion. The £6 weekly or £26 monthly rate avoids proving the amount, though the arrangement itself should still be recorded.

Related free tools

• Corporation Tax calculator: Estimates the Corporation Tax a UK limited company pays on its taxable profits for one accounting period of up to 12 months. Applies the small profits rate, the main rate and marginal relief, with associated companies, short periods and periods that straddle 1 April. A close investment-holding company pays the main rate on all its profits. Returns the tax, the effective rate and the payment and filing dates.
• Corporation Tax deadline calculator: Works out a UK private limited company's Corporation Tax payment date, CT600 filing deadline and Companies House accounts deadline from its accounting period. Accounts longer than 12 months are split into two Corporation Tax periods, each with its own payment date.
• Corporation Tax late filing penalty and interest calculator: Works out HMRC's penalties for filing a UK company's Company Tax Return (CT600) late — the flat £200/£400 penalties for filing deadlines from 1 April 2026 (£100/£200 before then), and the 10% or 20% tax-geared penalty — plus late payment interest on the Corporation Tax at HMRC's published rates.
• All free Corporation Tax tools

Last reviewed 14 October 2026. This calculator gives general guidance, not tax advice.