AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
If you are self-employed and work at least 25 hours a month from home, GOV.UK's simplified expenses let you claim a flat monthly amount instead of working out a share of your household bills: £10 for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more. Phone and internet are not included; you claim their business share separately.
What the flat rate replaces
Without the flat rate, a freelancer working from home has to work out the business share of costs such as heating and electricity, using a reasonable method such as rooms or time. GOV.UK's simplified expenses page says the flat rate replaces that calculation of personal and business proportions for home costs such as utility bills. It is an option, not a requirement.
The rates
| Hours of business use at home in the month | Flat rate for the month |
|---|---|
| Under 25 | Not available |
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 or more | £26 |
Source: GOV.UK, Simplified expenses if you're self-employed: working from home, checked October 2026. The page's published date is 19 August 2020, and the page was still live with these rates in October 2026.
Worked examples
Example 1: steady hours
Example. Amaka works about 60 hours a month from her flat in Croydon on projects for two Lagos agencies. Every month falls in the 51 to 100 band, so she claims £18 × 12 = £216 for the year.
Example 2: uneven months
Freelance work for Nigerian clients often comes in bursts, for example ahead of a product launch. The rate is set month by month, so record hours each month.
| Months | Hours per month | Rate | Total |
|---|---|---|---|
| 4 months | 30 | £10 | £40 |
| 6 months | 80 | £18 | £108 |
| 2 months | 110 | £26 | £52 |
| Year | £200 |
Both are illustrative. Months with fewer than 25 hours get nothing under the flat rate.
Flat rate or actual costs?
The flat rate is simple, but it is small. Compare it with the actual method before choosing.
Example. Femi uses one room of a four-room house only as an office and works 120 hours a month there. His heating and electricity for the year are £1,600. A one-in-four share is £400. The flat rate at £26 a month gives £312. In his case the actual method gives more, provided he can show the room is used for work and keeps the bills.
- Flat rate suits
- People who work at a kitchen table or shared space, where a fair share of bills is hard to work out; people who want minimal paperwork.
- Actual costs suit
- People with a dedicated office room, high energy bills, or long hours; people who keep bills anyway.
Whichever you use, use it consistently and keep a note of why. GOV.UK's office expenses page explains the actual method; see also expenses you can claim working for Nigerian clients from home.
Phone and internet are separate
GOV.UK says telephone and internet costs are not included in the flat rate; you claim the business proportion by working out the actual costs. For a freelancer who spends much of the day on video calls with clients in Lagos and Abuja, that share can be larger than the flat rate itself. See claiming phone and internet costs as a UK freelancer.
Counting hours
- Count time spent doing business work at home: client work, admin, invoicing, calls.
- Early or late calls with Nigerian clients count as long as they are business work.
- Keep a simple log: a calendar, a time-tracking tool, or a spreadsheet with hours per day.
- Total each month and apply that month's rate.
Who can use it
The flat rate is part of simplified expenses for the self-employed. The GOV.UK page sets one condition: you must work 25 hours or more a month from home. If you use the £1,000 trading allowance, you claim no expenses at all, so the flat rate does not apply that year. Limited company directors are outside this guidance.
Mistakes to avoid
- Claiming £26 for every month regardless of hours. The rate depends on the hours you actually worked at home that month, so a quiet December may drop to £10 or to nothing.
- Adding phone and broadband into the flat rate. They are claimed separately, as their business share.
- Claiming the flat rate and also a share of the same heating and electricity bills. The flat rate replaces that share; it does not sit on top of it.
- Counting hours spent working away from home, for example at a client's office in Lagos or a co-working space in London. Only business use of your home counts.
- Using the flat rate in a year when you have chosen the £1,000 trading allowance.
Example. Over a year Bisi records eleven months at 70 to 90 hours and one month of 20 hours while she travels. Her claim is 11 × £18 = £198, with nothing for the short month, plus the business share of her phone and broadband worked out separately.
Where Pryme fits
The flat rate is a calculation, not a payment, so it does not depend on your account. What helps is a clean record of income. A Pryme Business Account shows UK and Nigerian client payments on one statement, in the currency each client paid. See business multicurrency accounts and the Finance agent.
Questions people ask
How much can I claim for working from home if self-employed?
Under simplified expenses, £10 a month for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more, per GOV.UK.
Does the flat rate include broadband and phone?
No. GOV.UK says telephone and internet are not included; claim their business share separately using actual costs.
Can I use the flat rate if I work fewer than 25 hours a month at home?
No. The flat rate needs at least 25 hours of business use a month.
Is the flat rate better than claiming actual costs?
Not always. With a dedicated office room and high bills, a fair share of actual costs can be more. Compare both.
Sources
- GOV.UK: Simplified expenses, working from home · accessed Oct 2026
- GOV.UK: Expenses if you're self-employed, office, property and equipment (updated 8 Nov 2024) · accessed Oct 2026
- GOV.UK: Tax-free allowances on property and trading income · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.