Working from Home Tax Relief
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.
💻 Use of Home as Office Tax Relief Explained
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 Use of Residence as Office Tax Relief
For Employees:
Sign in with your Government Gateway account
Fill in the relevant tax year and confirm eligibility
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.