I’ve been reading up on home office deductions, and I was pleasantly surprised to learn that there’s a home office tax deduction available to those folks filing in the U.K. The deduction includes a portion of electricity and heating costs and, in some situations, mortgage interest. It does seem that it’s a little harder for telecommuters to claim a British home office deduction than it is in the U.S. — you have to have a contract explicitly stating that your employer does not provide you with any offfice space.
More information is available on this post by Catherine Roseberry at About.com.