Working from Home Tax Relief

Tax

Discover what working from home tax relief you’re entitled to in the UK. Learn who can claim, what expenses qualify, how much you can deduct, and how to apply – updated for 2025/26.

A house with cats and ducks working from home.

💻 What is Working from Home Tax Relief?

If you work from home in the UK—whether part-time or full-time—you may be eligible to claim tax relief on certain household expenses. This applies whether you're self-employed or an employee working remotely, provided you incur additional costs as a direct result of working from home.

HMRC recognises that remote working can lead to increased utility bills and other home office-related expenses, and allows individuals to offset part of these costs against their tax bill.

👤 Who Can Claim Working from Home Tax Relief?

You may be eligible if:

  • You're self-employed and use part of your home exclusively for business.

  • You're an employee and were required to work from home by your employer.

  • You incur extra costs that wouldn’t exist if you worked on-site (e.g. heating, electricity, broadband).

Note: You cannot claim if you simply choose to work from home occasionally.

🏠 What Can You Claim for When Working from Home?

✅ Allowable Expenses Include:

Expense Category Can Employees Claim? Can Self-Employed Claim? Notes
Electricity & Heating ✔️ ✔️ Proportion based on usage
Internet & Phone ✔️ (if used for work only) ✔️ Must exclude personal use
Council Tax ✔️ Only proportional share
Mortgage Interest ✔️ Capital repayments not allowed
Rent ✔️ Apportioned based on work area
Office Equipment ✔️ (if not reimbursed) ✔️ Must be wholly for work use

How Much Tax Relief Can You Claim?

There are two methods for claiming working from home expenses:

1. Flat Rate (Simplified) Method

HMRC allows employees to claim:

  • £6 per week

  • £26 per month with no receipts required

  • Saves approx. £62/year for basic rate taxpayers

Self-employed individuals can also use simplified expenses if working 25+ hours/week from home.

2. Actual Cost (Proportional) Method

You’ll need to calculate:

  • Total costs for utilities and rent/mortgage interest

  • % of home used for work (e.g. 1 out of 5 rooms = 20%)

  • Hours worked from home

This method generally yields higher relief for self-employed or full-time remote workers.

👥 Self-Employed vs Employees: Claiming Process

Claiming Type Self-Employed Employees
Form Used Self Assessment (SA103S/SA103F) HMRC online claim or Self Assessment
Eligible Expenses Broad range including rent, utilities, internet Limited to heating, lighting, phone bills
Proof Needed Receipts and usage calculations Basic records for verification

📥 How to Claim Working from Home Tax Relief

For Employees:

  1. Visit: gov.uk/tax-relief-for-employees

  2. Sign in with your Government Gateway account

  3. Fill in the relevant tax year and confirm eligibility

  4. Relief is automatically adjusted in your tax code

For Self-Employed:

  • Include home office expenses in your Self Assessment tax return

  • Choose either actual costs or simplified method

📂 Record Keeping and Evidence

You must retain:

  • Utility bills and broadband statements

  • A breakdown of how you calculated your work-from-home percentage

  • Receipts for equipment or furniture

  • Dates/hours worked from home

HMRC can request evidence for up to 4 years after the tax year ends.

⚠️ Common Mistakes to Avoid

  • Claiming the whole bill instead of just the work-use portion

  • Including personal expenses, like Netflix or food

  • Forgetting to update your tax code when your work situation changes

  • Not keeping records, even for flat-rate claims (just in case HMRC queries it)

📌 Summary: Key Takeaways

  • Tax relief is available for those who must work from home and incur extra costs.

  • Choose between flat rate and actual expenses depending on your situation.

  • Employees have limited claim scope; self-employed individuals can claim more.

  • Good record keeping is essential for successful claims.

❓ Frequently Asked Questions (FAQs)

1. Can I claim tax relief if I choose to work from home?
Only if your employer requires it or you're self-employed. Voluntary WFH doesn’t qualify for employees.

2. Can I claim for rent or mortgage payments?
Self-employed individuals can claim a proportion of mortgage interest or rent. Employees cannot.

3. What if I work from home part-time?
You can still claim, but only for the proportion of time and space used for work.

4. Do I need receipts to claim the flat-rate relief?
No receipts are needed for the flat-rate claim, but it's good practice to keep basic evidence.

5. Is this tax relief available every year?
Yes, but rules and flat rates may change—check HMRC guidance each tax year.

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