Working From Home Tax Relief
If your employer requires you to work from home, you may be able to claim tax relief on additional household costs. Here is how it works and how to claim.
Who Qualifies?
You can claim if your employer requires you to work from home, even for part of the week. This includes situations where your contract says you work from home, there is no office available, or your job requires you to live far from the office. You cannot claim simply because you choose to work from home or your employer allows it as an option.
Since 2022/23, HMRC has returned to the pre-pandemic rules. During COVID (2020/21 and 2021/22), anyone who worked from home for even one day could claim. That blanket allowance has ended.
The HMRC Flat Rate
The simplest method is claiming the HMRC flat rate of 6 pounds per week (312 pounds per year) without needing to keep receipts or prove actual costs. As a basic rate taxpayer, this saves you 1.20 per week (62.40 per year). Higher rate taxpayers save 2.40 per week (124.80 per year).
Your employer can also pay you up to 6 pounds per week tax-free to cover additional costs. If they already do this, you cannot also claim tax relief.
Claiming Actual Costs
If your additional costs exceed 6 pounds per week, you can claim the actual amount instead. You will need to keep evidence of costs before and after working from home. Eligible costs include:
- Heating and electricity (the additional amount used)
- Metered water (additional use)
- Business phone calls and broadband (proportion used for work)
You cannot claim for rent, mortgage interest, council tax, or broadband that you would pay regardless of working from home. Only the additional costs count.
How to Claim
- Go to GOV.UK and search for "claim tax relief for working from home"
- Sign in with your Government Gateway account
- Answer the eligibility questions
- HMRC will adjust your tax code to give you relief automatically
- If you complete Self Assessment, claim it on your tax return instead
You can backdate claims for up to four tax years. If you qualified during COVID but never claimed, you may still be able to get the relief for 2021/22.