If your employer requires you to work from home — whether full-time or on specific days — you can claim tax relief on the additional household costs you incur. HMRC offers a simple flat-rate allowance of £6/week (£312/year) that requires no receipts, or you can claim actual proportional expenses if they are higher. This guide explains who qualifies, how much you can save, and the correct way to claim in 26-27.[1]
Who is eligible for working from home tax relief?
You can claim working from home tax relief if your employer requires you to work from home as part of your job. The key word is “requires” — this is not available simply because you prefer working from home or have negotiated a hybrid arrangement for convenience. Valid reasons include: there is no office space available for you, your role genuinely requires you to work from home (e.g., on-call overnight), or your employer has closed the office on certain days.
Since the end of the COVID-19 blanket eligibility (which applied in 2020/21 and 2021/22), HMRC has returned to the stricter pre-pandemic rules. If you work in a hybrid pattern where you could go to the office every day but choose to work from home some days, you do not qualify. However, if your employer has genuinely reduced office capacity and mandates certain days at home, you can claim for those days. The distinction is whether working from home is required by your employer or chosen by you.
Self-employed people do not use this relief — instead, they claim a proportion of home expenses directly against their business income through Self-Assessment. The flat-rate and actual expenses methods described here apply specifically to employees claiming through PAYE.
How much is the HMRC flat-rate allowance?
The simplest way to claim is the flat-rate method: HMRC allows you to claim £6/week (£312/year) without providing any receipts or evidence of actual costs. You simply need to be eligible (i.e., your employer requires you to work from home). The tax saving depends on your marginal rate:
- Basic rate taxpayer (20%): save £62/year (£5/month)
- Higher rate taxpayer (40%): save £125/year (£10/month)
- Additional rate taxpayer (45%): save £140/year
The relief is modest — it is not going to transform your finances — but it is entirely free money for anyone who qualifies. You are entitled to it for the full year even if you only work from home some days per week (as long as the arrangement is employer-required). There is no pro-rating for part-time homeworkers; the full £6/week applies whether you work from home one day a week or five.
Your employer can pay the £6/week directly as a tax-free payment (it does not count as taxable income). If they already do this, you cannot also claim the relief from HMRC — that would be double-counting. Check your payslip for any “homeworking allowance” or similar payment before claiming.
How does the actual expenses method work?
If your actual additional costs from working at home exceed £312/year, you can claim the real proportion instead. This requires keeping records and calculating the business proportion of your household costs. Eligible costs include:
- Heating and electricity — the additional cost of heating and powering your home during working hours
- Metered water — additional usage during working hours
- Business phone calls — the business proportion of your phone bill
- Broadband — the business proportion of your internet costs
You cannot claim mortgage interest, rent, council tax, or general household insurance under this relief. These are considered costs you would incur regardless of working from home. HMRC is clear: you can only claim the additional costs caused by working at home, not a share of your overall housing costs. This is much more restrictive than the self-employed home office deduction.
To calculate the proportion, you need to establish how many rooms you use for work, how many hours per week, and what the total household cost is. For example, if you have a 5-room house and use 1 room for work, 8 hours per day, 5 days per week, the calculation would be: 1/5 (rooms) × 40/168 (hours in a week) = approximately 4.8% of your energy bills. For most people, this works out to less than £312/year, which is why the flat rate is usually the better option.
How do I claim working from home tax relief?
There are two routes to claim:
- Online via HMRC's employment expenses tool: Go to gov.uk and search for “claim tax relief for your job expenses.” The online form takes about 5 minutes. HMRC will adjust your tax code to include the allowance, meaning your take-home pay increases slightly each month for the rest of the tax year. This is the fastest method for PAYE employees.
- Through Self-Assessment: if you already file a tax return, claim the relief on the employment pages. Enter the amount under “other expenses” on page E2.
If you claim online, HMRC typically adjusts your tax code within 2-4 weeks. You will see your code number increase slightly (because your allowances have increased by £312). The relief applies for the full tax year — you do not need to claim monthly. However, you must claim for each tax year separately; it does not roll over automatically.
When are employer WFH perks taxable?
Some employers provide equipment, furniture, or payments to support homeworking. The tax treatment depends on what is provided:
- Equipment (laptop, monitor, desk): not taxable if provided primarily for business use. A laptop used mainly for work is not a benefit in kind even if you occasionally use it personally.
- Homeworking allowance up to £6/week: not taxable — this is the employer-paid equivalent of the HMRC flat rate. No P11D reporting required.
- Homeworking allowance above £6/week: the excess above £6/week is taxable as earnings unless your employer can demonstrate the higher amount covers actual additional costs (with receipts/evidence).
- Furniture reimbursement: if your employer buys you a desk or chair and it remains their property (on loan to you), it is not taxable. If they give you money to buy your own, it may be taxable unless specifically for business purposes.
The key principle is that equipment and payments for genuine business needs are not taxable. Payments that go beyond covering additional costs — or that effectively supplement your salary — are taxable benefits that should appear on your P11D. If in doubt, ask your employer whether the payment is reported to HMRC.
How does this affect my overall tax position?
The working from home relief reduces your taxable income by £312/year. For someone earning £45,000, this drops taxable income to £44,688, saving £62 per year at the 20% basic rate. It is a small adjustment but entirely free — the application takes 5 minutes and the benefit continues annually as long as you remain eligible.
Combined with other employment expense reliefs (professional subscriptions, uniform cleaning, tools), the total can be more meaningful. See our guide to reducing your tax bill for a complete list of reliefs that stack together.
Sources
- HMRC — Tax relief for employees: working at home. Flat rate £6/week without receipts. Eligibility criteria. Accessed July 2026.
- HMRC — Income Tax rates and Personal Allowances. Basic rate 20%, higher rate 40%, additional rate 45%. Accessed July 2026.