For a comprehensive overview of income tax, see our Income Tax guide.
If your employer requires you to work from home, you can claim tax relief on the additional costs — even with the flat-rate method that needs no receipts.
Millions of UK employees work from home at least some of the time, and many are entitled to tax relief on the additional costs they incur — extra heating, electricity, and broadband used for work. Yet the relief is widely underclaimed. The HMRC flat rate of £6 per week requires no receipts, takes around 10 minutes to claim online, and is worth £62 per year for basic-rate taxpayers and £125 for higher-rate taxpayers. That may not sound enormous, but you can claim for up to four previous tax years in one go — potentially worth £500 in one claim.
The single most important rule is that your employer must require you to work from home — it can’t simply be a personal preference or a perk your employer offers. This means many hybrid workers who choose to work from home some days without any requirement from their employer cannot claim for those voluntary days.
Who Can Claim?
Employed (PAYE)
| Situation | Can you claim? |
|---|
| Employer requires you to work from home (in your contract) | Yes |
| No office space available for you | Yes |
| Nature of your job requires home working | Yes |
| You choose to work from home (employer allows it as a perk) | No |
| You work from home to avoid commuting | No |
| Hybrid working — employer requires some days at home | Yes — for the days you are required to be at home |
The key test: Your employer must require it, not just permit it. HMRC checks whether reasonable facilities in an employer’s premises are available for you.
Self-Employed
| Situation | Can you claim? |
|---|
| You work from home and are self-employed | Yes — through Self Assessment |
| You use a room for business (even part-time) | Yes |
| You have a separate home office | Yes |
Self-employed people have more flexible rules — see the section below.
How Much Can You Claim? — Employed
Option 1: Flat Rate (No Receipts Needed)
| Detail | Amount |
|---|
| Flat rate | £6 per week (£312 per year) |
| Tax saving (basic rate — 20%) | £62.40 per year |
| Tax saving (higher rate — 40%) | £124.80 per year |
| Tax saving (additional rate — 45%) | £140.40 per year |
| Receipts needed? | No |
| Evidence needed? | You must genuinely be required to work from home |
This is the simplest option and suits most people. You do not need to prove your extra costs — HMRC accepts £6/week as a reasonable allowance.
Option 2: Actual Costs
If your actual additional costs are higher than £6/week, you can claim the exact amount — but you need evidence.
| Claimable cost | Example |
|---|
| Heating (extra) | Proportion of gas/electricity for the room you use |
| Electricity (extra) | Cost of running equipment, lighting |
| Metered water (extra) | If applicable |
| Business phone calls | Calls made for work (not line rental) |
| Internet (proportion) | The business-use portion of your broadband |
| NOT claimable | Reason |
|---|
| Mortgage or rent | Personal housing cost — not an additional expense of working from home |
| Council tax | Personal cost |
| Food and drink | Personal cost |
| Commuting costs saved | Not a cost you’ve incurred |
| Furniture (desk, chair) | May be claimable separately — see below |
Calculating Actual Costs
| Step | Method |
|---|
| 1 | Identify the room(s) used for work |
| 2 | Calculate the proportion of the house (e.g. 1 room of 5 rooms = 20%) |
| 3 | Apply that proportion to your gas/electricity/water bills for the period you worked from home |
| 4 | Deduct any amount already covered by your employer |
Caution: If you designate a room exclusively for work, this could have Capital Gains Tax implications when you sell the property. Using a room for mixed purposes (work and personal) avoids this issue.
How to Claim — Step by Step
Online (Quickest)
| Step | Action |
|---|
| 1 | Go to gov.uk/tax-relief-for-employees/working-at-home |
| 2 | Sign in with Government Gateway |
| 3 | Confirm you are required to work from home by your employer |
| 4 | Choose flat rate or actual costs |
| 5 | HMRC adjusts your tax code — you pay less tax automatically |
| 6 | Takes effect within a few weeks |
Through Self Assessment
If you file a Self Assessment tax return, add the claim on the Employment pages (box for expenses). Include the working from home allowance or actual costs as appropriate.
By Phone or Post
| Method | Details |
|---|
| Phone | 0300 200 3300 |
| Post | Form P87 for amounts under £2,500 — download from gov.uk |
Claiming for Previous Years
You can claim up to 4 years back. If you were required to work from home in 2022/23, 2023/24, or 2024/25 and didn’t claim, you can still do so now.
| Tax year | Deadline to claim |
|---|
| 2022/23 | 5 April 2027 |
| 2023/24 | 5 April 2028 |
| 2024/25 | 5 April 2029 |
| 2025/26 | 5 April 2030 |
Equipment and Furniture
If Your Employer Provides Equipment
| Situation | Tax implication |
|---|
| Employer provides laptop, monitor, chair | No tax on you — provided it is mainly for work use |
| Employer reimburses you for equipment | Check — may be tax-free if it’s a business expense |
| You buy equipment yourself | May be able to claim tax relief (see below) |
If You Buy Equipment Yourself
| Item | Claimable? |
|---|
| Desk, chair, monitor (used substantially for work) | Yes — claim the full cost or capital allowances |
| Stationery, printer cartridges | Yes |
| Computer (if required and substantially for work) | Potentially — but HMRC may argue it’s for personal use too |
| Phone or broadband upgrade | Only the additional cost attributable to work |
Claims for equipment go on form P87 (if under £2,500 total expenses) or your Self Assessment return.
Self-Employed — Working from Home
Self-employed people have two options:
Option A: Simplified Expenses (Flat Rate)
| Hours worked at home per month | Flat rate deduction |
|---|
| 25–50 hours | £10/month |
| 51–100 hours | £18/month |
| 101+ hours | £26/month (£312/year) |
No receipts needed. Claim on your Self Assessment tax return.
Option B: Actual Costs (Proportion Method)
| Step | Action |
|---|
| 1 | Calculate total household costs (gas, electricity, water, broadband, council tax, insurance, rent/mortgage interest) |
| 2 | Determine the proportion used for business (by room or time) |
| 3 | Claim that proportion on your Self Assessment |
| Example | Calculation |
|---|
| Total household running costs | £12,000/year |
| Business room = 1 of 5 rooms = 20% | £2,400 |
| Used for business 50% of the time | £1,200 claimable |
For most self-employed people working from home full-time, the actual proportion method gives a higher deduction than simplified expenses. But it requires more record-keeping.
Related: Self-Employment Tax Guide
Employer Reimbursement
| Scenario | Tax treatment |
|---|
| Employer pays you up to £6/week (£26/month) for working from home | Tax-free — no need to claim |
| Employer pays you more than £6/week | Amount above £6/week may be taxable unless you can prove actual costs |
| Employer pays nothing | You claim tax relief from HMRC yourself |
Check your payslip — some employers already pay a working from home allowance. If so, you cannot claim tax relief on the same costs.
Common Mistakes
| Mistake | Result |
|---|
| Claiming when you’re not required to work from home | HMRC may reject the claim and ask for repayment |
| Claiming the COVID-era flat rate (which was more generous) | The temporary COVID scheme ended April 2022 — standard rules now apply |
| Not checking whether your employer already reimburses you | You cannot claim relief on costs your employer covers |
| Designating a room exclusively for work | Potential CGT issue when selling your property |
| Forgetting to claim for previous years | You can go back 4 years — don’t leave money on the table |
Quick Summary
| Your status | Best route | Amount |
|---|
| Employed — required to work from home | Flat rate — £6/week via gov.uk | £62.40/year saving (basic rate) |
| Employed — higher costs | Actual costs via P87 or Self Assessment | Variable |
| Self-employed — simple | Simplified expenses — £10-£26/month | Up to £312/year |
| Self-employed — higher costs | Proportion method via Self Assessment | Variable — often £1,000–£2,000+ |
Hybrid Workers — Special Rules
Many people now work partly from home and partly in the office. Here’s how the rules apply:
| Working Pattern | Can You Claim? | Notes |
|---|
| 5 days home (employer requires) | Yes — full £6/week | Best case |
| 3 days home, 2 office (employer requires home days) | Yes — for home days | Claim proportionally |
| 2 days home (your choice), 3 office | No | Must be required by employer |
| Some days home when office unavailable | Yes — for those days | Even if irregular |
| Contractually home-based | Yes | Contract is your evidence |
Tips for Hybrid Workers
| Tip | Why |
|---|
| Check your contract | Does it specify home working? |
| Ask HR for confirmation in writing | Useful if HMRC queries the claim |
| Keep a log of home working days | Supports actual costs claim |
| Don’t claim for voluntary home days | HMRC may reject the whole claim |
Directors and Company Owners
If you’re a director of your own limited company, the rules differ:
| Scenario | Recommended Approach |
|---|
| Director of own company, work from home | Company pays you £6/week tax-free — this is a business expense |
| Director with home as registered office | Can additionally claim use of home as office |
| Director — higher costs | Company can reimburse actual costs — needs evidence |
Setting Up Home Working Allowance Through Your Company
| Step | Action |
|---|
| 1 | Board minute confirming home working requirement |
| 2 | Add £6/week (£26/month) to salary — mark as expenses |
| 3 | This is tax-free for you and a deductible cost for the company |
| 4 | For amounts over £6/week — keep detailed records |
Rent a Room to Your Company
Some directors rent a room in their home to their company. This uses different rules:
| Consideration | Details |
|---|
| Market rate rent | Must be reasonable (typically £200-£400/month for a room) |
| Rent a Room Scheme | Personal tax-free up to £7,500/year |
| Corporation Tax deduction | Company deducts the rent |
| Documentation | Need proper licence/rental agreement |
Caution: Get accountant advice — this arrangement has specific requirements.
Capital Gains Tax Warning
If you use part of your home exclusively for business (rather than sometimes for personal use too):
- That area could be liable for Capital Gains Tax when you sell the property
- Private Residence Relief may not fully apply to that portion
Solution: Use the room for both business and personal purposes, even occasionally. Exclusive business use triggers the CGT risk; mixed use does not.
What Counts as “Required” to Work From Home?
HMRC is strict about this. Here’s the detail:
| Situation | Counts as Required? | Why |
|---|
| Contract states you must work from home | Yes | Written requirement |
| Employer closed office/no desk space | Yes | Facilities not available |
| Job cannot be done at employer’s premises | Yes | Inherent in the role |
| Employer encourages home working | No | Encouragement ≠ requirement |
| You prefer working from home | No | Personal preference |
| Commute is inconvenient | No | Travel issues don’t count |
| Disability/health reason | Maybe | If employer confirms accommodation |
| Childcare reasons | No | Personal circumstance |
How HMRC Checks
| Check | What They Look For |
|---|
| Employment contract | Home working clauses |
| Employer policy documents | Official WFH policy |
| Whether office space exists | If desk is available, harder to claim |
| Pattern of work | Consistent home working suggests requirement |
Claiming for Equipment — Full Details
You can claim for business equipment separately from the £6/week allowance:
| Item | Claimable? | Notes |
|---|
| Desk | Yes | If needed for work |
| Office chair | Yes | Ergonomic needs are valid |
| Monitor/screen | Yes | If employer doesn’t provide |
| Keyboard, mouse | Yes | If employer doesn’t provide |
| Webcam, headset | Yes | Required for remote meetings |
| Laptop/computer | Usually no | Typically employer provides; partial use is tricky |
| Printer | Maybe | Only if needed for work |
| Stationery | Yes | Paper, ink, pens |
| Bookshelf for work materials | Yes | If used for work |
| Software subscriptions | Maybe | Only if not provided by employer |
| Broadband upgrade | Partial | Only additional cost for work |
How to Claim for Equipment
| Expense Total | Method |
|---|
| Under £2,500 (including WFH allowance) | Form P87 |
| Over £2,500 | Must file Self Assessment |
| Any amount (if already doing SA) | Add to Employment section |
| Step | Action |
|---|
| 1 | Keep all receipts |
| 2 | Note the date and what the item is for |
| 3 | Claim via P87 or Self Assessment |
| 4 | Tax relief given = cost × your tax rate (20%, 40%, or 45%) |
Detailed Example — Maximising Your Claim
Employee on £35,000 Salary, Basic Rate Taxpayer
| Expense | Amount | Tax Relief (20%) |
|---|
| Flat rate home working (52 weeks × £6) | £312 | £62.40 |
| Office desk | £200 | £40.00 |
| Office chair | £150 | £30.00 |
| Monitor | £180 | £36.00 |
| Webcam and headset | £80 | £16.00 |
| Total claimable | £922 | £184.40 |
Filing method: Form P87 (under £2,500 total)
Employee on £60,000, Higher Rate Taxpayer
Same expenses but 40% tax relief:
| Expense | Amount | Tax Relief (40%) |
|---|
| Flat rate home working | £312 | £124.80 |
| Office desk | £200 | £80.00 |
| Office chair | £150 | £60.00 |
| Monitor | £180 | £72.00 |
| Webcam and headset | £80 | £32.00 |
| Total claimable | £922 | £368.80 |
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