If your employer requires you to work from home, you may be able to claim tax relief on the additional household costs you incur. This relief is available to employees who must work from home as part of their employment — not those who simply choose to.
Who Qualifies?
You can claim working from home tax relief if:
- Your employment contract requires you to work from home, or
- Your job requires you to live far from the office and work from home, or
- There are no appropriate facilities available at your employer’s premises for you to do your job
You cannot claim if:
- You choose to work from home for convenience
- Your employer offers an office but you prefer working from home
- You are self-employed (different rules apply — you can deduct a proportion of home costs as business expenses)
The Flat Rate Method (£6 per Week)
The simplest way to claim is the HMRC-approved flat rate of £6 per week (£26 per month). You do not need to keep receipts or prove your actual costs. This gives you tax relief of:
| Tax Rate | Weekly Relief | Annual Relief |
|---|---|---|
| Basic Rate (20%) | £1.20 | £62.40 |
| Higher Rate (40%) | £2.40 | £124.80 |
| Additional Rate (45%) | £2.70 | £140.40 |
The flat rate is not a refund — it is tax relief. A Basic Rate taxpayer saves £62.40 per year, not £312.
Claiming Actual Costs
If your additional costs are higher than £6 per week, you can claim the actual additional costs of working from home. These include the extra amounts spent on:
- Heating and electricity used during working hours
- Metered water (if applicable)
- Business phone calls or a proportion of broadband (only the additional cost attributable to work)
You cannot claim for costs that would exist regardless of working from home, such as rent, mortgage payments, council tax, or the base cost of broadband you would have anyway. You must keep records and receipts to support your claim.
How to Claim
Option 1: Through your employer. Your employer can pay you up to £6 per week tax-free for working from home without any need to report it to HMRC. Many employers already do this.
Option 2: Online via GOV.UK. If your employer does not reimburse you, you can claim directly from HMRC using the online P87 form for employment expenses. HMRC will adjust your tax code to provide the relief.
Option 3: Self Assessment. If you already file a Self Assessment return, include the claim on the employment pages.
Employer-Provided Equipment
If your employer provides equipment for home working — such as a laptop, monitor, desk, or chair — this is not a taxable benefit provided it is mainly used for work. You do not need to claim relief for employer-provided items, and they do not count toward your working from home claim.
Self-Employed Workers
Self-employed individuals can claim a proportion of household costs as business expenses. HMRC offers simplified expenses flat rates based on hours worked at home:
| Hours Worked per Month | Flat Rate per Month |
|---|---|
| 25–50 hours | £10 |
| 51–100 hours | £18 |
| 101+ hours | £26 |
Alternatively, you can calculate the actual proportion of household costs attributable to your business use (e.g., by room area and time spent working).
Key Takeaway
The amounts are modest for employees, but the flat rate claim is quick and easy. If your employer requires you to work from home, there is no reason not to claim. The relief adds up over multiple years and costs nothing to apply for.