How to Claim the Working from Home Tax Relief in the UK
Working from home has become the norm for millions of UK workers. Whether you work remotely full-time or just part of the week, you may be able to claim tax relief on the extra household costs you incur. The rules differ depending on whether you are an employee or self-employed.
For Employees
If your employer requires you to work from home — whether because there is no suitable office, or the nature of your job makes it necessary — you may be entitled to claim working from home tax relief. Voluntary home working (by choice rather than necessity) typically does not qualify, though HMRC relaxed this rule during the COVID-19 pandemic.
The Flat Rate Method
The simplest approach is to claim £6 per week (£312 per year) as a flat rate. You do not need to keep any receipts. For a basic rate taxpayer, this saves £62.40 per year. For a higher rate taxpayer, it saves £124.80 per year. Small amounts, but straightforward to claim. To claim this for previous tax years, use form P87 for amounts under £2,500, or Self-Assessment if you file a return anyway.
Claiming Actual Costs
If your additional household costs exceed £6/week, you can claim the actual extra amount, but you must keep records and receipts. Calculate the extra heating, lighting, and broadband costs attributable to your home working, based on the proportion of your home used for work and the hours worked.
For Self-Employed People
Self-employed people have more flexibility. They can use HMRC's simplified flat rate based on monthly hours of business use at home: £10 for 25–50 hours, £18 for 51–100 hours, £26 for over 100 hours per month.
Alternatively, claim a proportion of actual home costs (rent or mortgage interest, council tax, utilities, broadband) based on the number of rooms in your home used for business and the proportion of time they are used for work. Be careful: if you designate a room exclusively for business, you may create a Capital Gains Tax liability on that proportion of your home when you sell, as private residence relief will not cover it.
What Costs Are Covered?
Allowable costs include heating, lighting, water rates, and broadband (for business use only). Mortgage interest or rent may be included in proportional claims. Costs that are the same whether or not you work from home — such as council tax or mortgage capital repayments — are generally not allowable.
HMRC's Check Your Employment Status Tool
If you are unsure whether your home working arrangement qualifies, HMRC has online guidance at gov.uk/tax-relief-for-employees. For self-employed people, the guidance on business expenses at gov.uk/expenses-if-youre-self-employed applies.
Employer-Provided Equipment
If your employer provides equipment (a laptop, desk, or office chair) for home working, there is no tax or NI charge on this as a benefit in kind, provided the equipment is used mainly for business. If you buy equipment yourself and your employer does not reimburse you, you may be able to claim the cost as an employment expense.
