A Guide to Working From Home Tax Relief in the UK
Working from home became far more common across the UK in recent years, and many employees were able to claim tax relief for some of the extra household costs they incurred while working remotely.
At Tax Bridge Solutions, we regularly help clients understand whether they may qualify for working from home tax relief and how to claim any refund they may be entitled to.
In this guide, we explain who can claim, what expenses may qualify, how the process works, and important changes to the rules.
What Is Working From Home Tax Relief?
Working from home tax relief is a type of tax relief available to eligible employees who were required to work from home and incurred additional household expenses as a result. (gov.uk)
Rather than reimbursing the full amount spent, the relief reduces the amount of Income Tax you pay.
Who Can Claim Working From Home Tax Relief?
You may be eligible to claim if your employer required you to work from home and you had additional household costs because of it. (gov.uk)
Examples may include situations where:
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Your employer does not have suitable office facilities
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Your role requires homeworking
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You live too far away from your workplace
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You were instructed to work remotely
However, if you simply chose to work from home for personal convenience, you would generally not qualify under HMRC rules. (gov.uk)
What Expenses Can You Claim For?
Eligible employees may be able to claim relief on additional household costs directly related to working from home.
This can include:
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Heating and electricity
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Metered water usage
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Business phone calls
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Increased broadband usage (in some cases)
The costs must relate specifically to your work and must not already have been fully reimbursed by your employer. (gov.uk)
Expenses such as rent, mortgage payments, or general household bills that would remain the same regardless of working from home are normally not claimable.
How Much Can You Claim?
HMRC previously allowed many employees to claim a flat-rate allowance of £6 per week without needing to provide receipts for exact costs. (gov.uk)
The actual tax relief received depended on your tax band.
For example:
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Basic rate taxpayers (20%) could typically receive around £1.20 per week in tax relief
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Higher rate taxpayers (40%) could receive around £2.40 per week
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Additional rate taxpayers (45%) could receive slightly more
Alternatively, some employees could claim the exact additional costs incurred if they had supporting evidence.
Important Changes to Working From Home Relief
HMRC rules around homeworking relief have changed over time, particularly following the pandemic period.
From the 2026/27 tax year onwards, employees will no longer be able to claim working from home tax relief directly from HMRC. However, claims can still be made for eligible previous tax years within the allowed time limits. (gov.uk)
In many cases, claims can still be backdated for up to four tax years. (litrg.org.uk)
How Do You Claim Working From Home Tax Relief?
The method depends on whether you complete a Self Assessment tax return.
If You Complete Self Assessment
You would normally include the claim within your annual tax return.
If You Do Not Complete Self Assessment
You may be able to claim directly through HMRC’s online service or by submitting a P87 form. (gov.uk)
You may need information such as:
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Your employer’s details
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PAYE reference number
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Evidence that you were required to work from home
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Records of expenses (if claiming actual costs)
Can Hybrid Workers Claim?
This depends on the reason for working from home.
Under current HMRC rules, employees who choose to work remotely under hybrid working arrangements may not qualify if office facilities remain available. (gov.uk)
Eligibility is generally based on whether homeworking is required rather than optional.
What If Your Employer Paid Some Expenses?
If your employer reimbursed part of your additional costs, you may only be able to claim relief on the amount not already covered. (gov.uk)
You cannot claim tax relief twice for the same expense.
How Long Does a Claim Take?
HMRC processing times can vary depending on the type of claim and the information provided.
Some claims may result in:
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A change to your tax code
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A direct refund payment
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An adjustment through payroll
Delays can occur if HMRC requires additional evidence or supporting documentation.
Common Mistakes to Avoid
Some common issues include:
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Claiming when working from home was voluntary
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Claiming expenses already reimbursed by an employer
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Failing to keep supporting records
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Claiming non-eligible household costs
Submitting inaccurate claims could result in HMRC requesting repayment later. (thesun.co.uk)
How Tax Bridge Solutions Can Help
At Tax Bridge Solutions, we help clients understand whether they qualify for working from home tax relief and assist with preparing accurate HMRC claims.
We can also help with:
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PAYE tax refunds
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Tax code reviews
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Self Assessment tax returns
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Employment expense claims
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CIS tax refunds
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Pension tax refunds
Our goal is to make tax matters easier to understand while helping ensure you do not pay more tax than necessary.
Need Help Claiming Tax Relief?
If you believe you may qualify for working from home tax relief or want help reviewing previous tax years, Tax Bridge Solutions can help assess your situation and explain your options.
Contact our team today to discuss your claim and find out whether you may be entitled to money back from HMRC.
