By
August 23, 2026
Can My UK Company Pay for Home Office Expenses?
Yes. A UK limited company can pay or reimburse certain home office expenses when a director or employee works from home. However, what can be claimed depends on the type of expense, how it is used and whether the cost is genuinely related to the business.
Working from home does not mean that every household bill can automatically be paid by the company.
Depending on the circumstances, a UK company may be able to pay or reimburse costs relating to:
Different tax rules apply to different types of expenses.
Yes. HMRC allows employers to make payments to employees who regularly work from home under a homeworking arrangement.
A company can generally pay up to £6 per week or £26 per month without requiring evidence of the exact additional household costs, provided the relevant conditions are met.
This can also apply to a director who works as an employee of their own limited company.
If the company reimburses more than the flat-rate amount, evidence of the actual additional costs may be required.
The homeworking payment is intended to contribute towards additional household costs arising from working from home.
These can include increased costs such as:
It is not designed to reimburse general household expenditure that would have been incurred regardless of working from home.
Generally, a company cannot simply pay a director's personal rent or mortgage and treat the entire amount as an allowable home office expense.
These are primarily personal household costs.
However, a director may potentially enter into an arrangement under which part of their home is used by the company and rent is charged to the company.
This is more complex and can create personal tax, property and other implications, so it should be structured carefully.
Yes, potentially.
A company may purchase furniture required for business use, such as:
Where the company purchases the equipment, it will generally belong to the company.
The appropriate accounting and tax treatment will depend on the type of item and how it is used.
Yes.
A UK limited company can purchase business equipment such as:
Qualifying equipment may be eligible for capital allowances or other appropriate tax treatment.
Potentially.
If a separate internet connection is installed specifically for business purposes, the company may be able to pay the qualifying cost.
If you already have a personal broadband connection and the cost does not increase because you work from home, the entire household broadband bill would not normally become a company expense simply because it is also used for work.
A company can potentially contribute towards the additional household costs created by working from home.
Rather than calculating the exact business proportion of every utility bill, many small limited companies use HMRC's permitted homeworking payment where the conditions are met.
Qualifying home office costs paid by the company can generally reduce its taxable profits.
For example, if the company makes allowable homeworking payments to a director-employee, those payments may be deductible when calculating the company's taxable profits.
This can potentially reduce its Corporation Tax liability.
A VAT-registered company may be able to reclaim VAT on qualifying business purchases, subject to the normal VAT rules.
For example, VAT may potentially be recoverable on eligible office equipment purchased by the company for business use.
Where an expense has both business and private use, VAT recovery may be restricted.
Yes.
Companies should maintain appropriate records supporting home office expenses, particularly where actual costs or equipment purchases are being claimed.
Useful records include:
Good records make it easier to demonstrate why an expense was paid by the company.
Potentially, yes. HMRC's homeworking rules can allow an employer to pay up to £6 per week without requiring evidence of the exact additional costs, provided the relevant conditions are satisfied.
Yes. A director who works from home may be able to receive qualifying homeworking payments or reimbursement of eligible expenses.
Potentially. If the desk is required for company work and the arrangement meets the relevant rules, the company can purchase business office equipment.
The company cannot normally treat the entire household electricity bill as a business expense. However, qualifying additional costs associated with working from home may potentially be reimbursed.
The company cannot generally pay a director's personal mortgage as an ordinary business expense.
Qualifying home office expenses can generally reduce taxable company profits and may therefore reduce the company's Corporation Tax bill.
A UK limited company can pay or reimburse certain home office expenses when a director or employee works from home.
For many small companies, one of the simplest options is the HMRC homeworking payment of up to £6 per week or £26 per month, where the relevant conditions are met.
The company can also potentially purchase genuine business equipment such as computers, monitors, desks and other office items.
However, personal household expenses such as the full mortgage, rent or utility bills should not automatically be treated as company expenses simply because you work from home.
