Home Office Expenses for Landlords: What You Can Claim (2026/27)
Last updated 24 June 2026 · 7 min read · By the LandlordTaxAi Editorial Team
The short answer
Landlords who manage their lettings from home can claim a use-of-home deduction — either HMRC’s simplified flat rate (£10–£26 a month, based on hours) or a fair proportion of your actual household running costs. The calculator above compares both for 2026/27.
Managing a rental involves real admin — bookkeeping, arranging repairs, dealing with tenants — and if you do it from home, a slice of your household costs is an allowable expense. It’s modest, but it’s money many landlords leave on the table.
The calculator above works out your use-of-home claim both ways so you take the better one. This guide explains the simplified flat rate, the actual-cost method, and the hours rule. For everything else you can claim, see allowable expenses for landlords.
Free calculator · no sign-up
Landlord Home Office Calculator
Compare the simplified flat rate against actual costs for your use-of-home deduction in 2026/27.
Result
- Taxable profit (rent − expenses)
- £11,200
- Income Tax at 20%
- £2,240
- Less mortgage interest credit (20%)
- − £1,000
- Tax due on this property
- £1,240
- Income after tax
- £9,960
Flat rate £10/£18/£26 a month by hours (min 25 hrs). Phone and internet claimed separately.
The simplified flat rate
The easiest method is HMRC’s simplified expenses flat rate. You claim a fixed monthly amount based on the hours you spend working from home on the property business — no need to apportion bills. It’s only available if you work 25 hours or more a month from home.
| Hours of business use per month | Flat rate per month |
|---|---|
| 25 to 50 hours | £10 |
| 51 to 100 hours | £18 |
| 101 hours or more | £26 |
The flat rate covers household running costs like heat, light and power — but not phone or internet, which you can claim separately for the business-use portion.
The actual-cost method
Alternatively, you can claim a fair proportion of your actual household costs — things like heating, electricity, and council tax — based on how much of your home and time is used for the lettings business.
A common approach is to apportion by the number of rooms used and the time they’re used for business. For a landlord with a small portfolio this can be a little more than the flat rate, but it needs records and a reasonable, defensible calculation.
Whichever method you use, the work must be genuine property-business admin. A landlord with one property doing a few hours a month will usually find the flat rate simpler and safer.
How to use the calculator above
Claim your home-working costs the easy way
LandlordTaxAi works out your use-of-home deduction and every other allowable cost automatically — small claims add up across a portfolio and a tax year.
See how it worksA worked example
Priya spends about 60 hours a month managing her three rentals from a home office (2026/27).
| Monthly hours | 60 (in the 51–100 band) |
| Flat rate per month | £18 |
| Annual flat-rate claim (£18 × 12) | £216 |
| Plus business share of phone/internet | Claimed separately |
Priya claims £216 for the year on the flat rate, with no need to apportion bills — plus the business portion of her phone and broadband on top.
Frequently asked questions
Can landlords claim home office costs?
Yes. If you run your lettings from home you can claim a use-of-home deduction — the simplified flat rate or a fair share of actual costs.
What’s the simplified flat rate?
£10/month for 25–50 hours, £18/month for 51–100 hours, and £26/month for 101+ hours of business use from home.
Is there a minimum number of hours?
Yes — the flat rate is only available if you work 25 hours or more a month from home on the property business.
Does the flat rate cover phone and internet?
No. It covers household running costs like heat and light. Claim the business-use share of phone and broadband separately.
Can I claim actual costs instead?
Yes — a fair proportion of heating, electricity and similar, based on rooms and time used for the business. It needs records and a reasonable calculation.
Is one method better?
For small portfolios the flat rate is usually simpler and low-risk. Larger operations doing many hours may find actual costs higher — the calculator compares both.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 24 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home; https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim75010; https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.