Working from home tax relief helps employees claim back some of the extra household costs they incur due to their job. This includes expenses like additional heating, electricity, and business phone calls that arise from working remotely.

It’s important to distinguish between employer allowances and HMRC tax relief. Some employers offer a work-from-home allowance to help cover these costs. If your employer fully reimburses your expenses, you cannot claim tax relief from HMRC.

However, if your employer only partially reimburses you or doesn’t provide any allowance, you may be eligible to claim tax relief on the remaining costs.

Who Can Claim Working from Home Tax Relief?

Working from home (WFH) tax relief has strict eligibility criteria and is generally only available to employees who are required to work from home by their employer.

Eligibility Criteria (2025/26)

You are eligible for tax relief in the 2025/26 tax year only if both of the following apply:

Your employer requires you to work from home as part of your job (e.g., they do not have an office or you must live far from the office).
You have incurred additional household costs as a result (e.g. heating, electricity) which have not been reimbursed by your employer.

You cannot claim if you:

Choose to work from home.
Work a hybrid pattern where your employer provides an office you could use.
Are working from home solely due to health reasons

What About Hybrid Working?

If your employer requires you to split your time between home and the office, you may still be eligible to claim tax relief for the days you work from home, provided it’s a requirement of your role and not just convenience.

Under these conditions, you can claim the flat rate allowance of £6 per week (pro-rated for the days you work from home) to cover additional costs like heating, electricity, and internet usage.

However, if your employer fully reimburses your homeworking expenses or if working from home is optional, you cannot claim tax relief.

What Expenses Can You Claim?

You can claim tax relief only on additional household costs that are wholly and exclusively for work purposes. This means the expense must be directly related to your job and not for personal use.

Examples of Claimable Expenses

Business phone calls made exclusively for work.
Additional gas, electricity, heating, or water costs for your work area.
Internet costs, but only if you didn’t have internet before working from home or if your usage has increased due to work.
Cleaning costs specifically for your work area.
Office supplies like stationery and printer ink used solely for work.

What You Cannot Claim

Rent, mortgage payments, or broadband costs used for both personal and work purposes.
Home office furniture and equipment, as these are usually either disallowed or treated as a taxable benefit if provided by your employer.
Expenses fully reimbursed by your employer. If you receive partial reimbursement, you can claim tax relief on the unreimbursed portion.

How Much Can You Claim?

For the 2024/25 tax year, you can claim working from home tax relief in two ways:

Flat rate allowance: £6 per week (up to £312 per year) without needing to provide evidence of your actual expenses.

Exact amount spent: You can claim the precise additional costs you’ve incurred, but you must provide receipts or bills as evidence.

The tax relief you receive depends on your income tax rate:

Basic rate taxpayers (20%) get 20% of the amount claimed.
Higher rate taxpayers (40%) get 40%.
Additional rate taxpayers (45%) get 45%.

Example:

If you claim the flat rate of £6 per week and pay the basic tax rate, you would receive £1.20 per week in tax relief (20% of £6).

How to Claim Working from Home Tax Relief

Claiming via Self Assessment

If you complete a Self Assessment tax return, you should include your working from home tax relief claim within it. You can claim either the flat rate allowance or the exact amount spent, providing evidence if required.

Using HMRC’s Online Service

If you do not file a Self Assessment return, you can use HMRC’s online service to check your eligibility and submit a claim for working from home tax relief.

Evidence Requirements

For the flat rate allowance (£6 per week), you must provide evidence that you are required to work from home.
For claims based on actual expenses, you need to submit receipts or bills to prove your costs.

Adjustments to Your Tax Code

For claims related to the current tax year, HMRC will usually adjust your tax code to reduce the tax you pay throughout the year.

Claiming for Previous Years

You can claim working from home tax relief for the current tax year and up to four previous tax years. HMRC may adjust your tax code or issue a refund for any overpaid tax.

Why Did HMRC Change the Rules?

During the Covid-19 pandemic, HMRC introduced temporary, relaxed rules allowing many employees to claim working from home tax relief due to widespread remote working mandates.

This helped support those forced to work remotely by government restrictions.

Now that pandemic restrictions have lifted, HMRC has tightened eligibility criteria.

The relief is now focused on employees who are genuinely required to work from home because of their job, such as those without an office or with unreasonable commutes, rather than those working from home out of convenience or choice.

This shift ensures the tax relief is targeted at those who truly need it, preventing claims based solely on flexible or voluntary homeworking arrangements.

Special Considerations for Limited Company Directors

If you’re a limited company director working from home, you can still claim tax relief on additional household expenses related to your work, even if your company’s registered office is at a different address.

However, it’s important to note:

Any expenses reimbursed by your company cannot be claimed again as tax relief.
If your company provides equipment or furniture for your home office, this may be treated as a taxable benefit.
Proper records and evidence of your additional costs are essential to support your claim.

Consulting one of our experts at Ryans Chartered Accountants can help ensure you claim correctly and comply with HMRC rules.

What is working from home tax relief?

Working from home tax relief is a government allowance that helps employees reclaim extra household costs incurred due to remote working, such as heating and electricity.

What is the working from home allowance?

The working from home allowance is a flat rate, currently £6 per week (2025/26), that you can claim without providing detailed receipts, or you can claim the exact additional costs you’ve incurred.

How does the HMRC working from home allowance work?

HMRC allows eligible employees to claim tax relief on additional household expenses if they are required to work from home. This can be claimed via Self Assessment or HMRC’s online service.

Can I claim tax relief for working from home?

You can claim tax relief working from home if your employer requires you to work remotely and you incur extra costs. You cannot claim if working from home is optional or for convenience.

How much can I claim for working from home?

You can claim either the flat rate of £6 per week or the actual additional costs you’ve spent, supported by evidence. The amount of tax relief depends on your income tax rate.

What are working from home tax deductions?

These are allowable expenses related solely to your job that you can deduct from your taxable income, such as business calls, extra heating, or office supplies.

How does the working from home tax code affect me?

If you claim tax relief for working from home, HMRC may adjust your tax code to reduce the amount of tax deducted from your salary throughout the year.

How do I claim tax relief working from home?

You can claim through your Self Assessment tax return or use HMRC’s online service if you don’t file a return. Evidence of working from home and receipts for actual costs are required for precise claims.

What is the working from home tax rebate?

This refers to the refund or reduced tax liability you receive after claiming tax relief on eligible homeworking expenses.

Is there a tax allowance for working from home?

Yes, the standard tax allowance for working from home is £6 per week, designed to cover additional household costs without needing detailed proof.

Can I claim working from home tax relief if I’m a limited company director?

Yes, directors can claim tax relief on additional homeworking expenses, even if the company’s registered office is elsewhere, provided expenses are not reimbursed by the company.

What is the HMRC work from home tax relief?

It’s the tax relief scheme administered by HMRC that allows eligible employees to claim back some of the extra costs incurred from working remotely.

How do I claim tax back for working from home?

Claim by submitting a Self Assessment tax return or using HMRC’s online service, providing necessary evidence and details of your expenses.

What is the working from home tax benefit?

This refers to the financial advantage employees gain by reducing their taxable income through claiming allowable homeworking expenses.

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