Short answer
Yes, three ways: the flat £6 a week HMRC allowance with no records, a calculated proportion of actual household costs where you work from home under a homeworking arrangement, or a formal rental licence where the company pays you rent.
Corporation tax
Directors can claim £6 a week with no evidence, a proportion of actual costs, or charge the company rent under a licence. The three routes compared.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityYes, three ways: the flat £6 a week HMRC allowance with no records, a calculated proportion of actual household costs where you work from home under a homeworking arrangement, or a formal rental licence where the company pays you rent.
The flat rate and the proportional claim
Charging the company rent
Yes, three ways: the flat £6 a week HMRC allowance with no records, a calculated proportion of actual household costs where you work from home under a homeworking arrangement, or a formal rental licence where the company pays you rent.
£6 a week, £312 a year, needs no evidence and no benefit in kind arises. It is the right answer for most directors who work from home occasionally.
A proportional claim divides heat, light, metered water, broadband and cleaning by rooms and hours of business use. It is bigger but needs a defensible calculation. Mortgage interest, rent and council tax cannot be included under this route.
A licence agreement between you and the company lets the company deduct a commercial rent and gives you rental income personally, reportable on your Self Assessment with the related household costs deducted against it. Done properly this is the largest claim and is tax neutral or better once expenses are offset.
Keep the rent commercial and the space used for business only during working hours. Exclusive business use of part of a home can affect private residence relief on sale, which is the usual reason we advise shared rather than exclusive use.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
If the line already exists for personal use, there is no additional cost, so no claim. A separate business line is claimable in full.
No, because you are paid rent rather than given free use. It must be documented to hold up.
Yes, if both genuinely work from home, each can claim under the appropriate route.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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