Working From Home Tax Relief
Working From Home Tax Relief
Can you still claim tax relief for working from home? The rules changed from 6 April 2026. Find out what employees, employers, sole traders and limited company directors can claim under the current rules.
Can You Still Claim Working From Home Tax Relief?
The rules changed from 6 April 2026. Employees can no longer claim Income Tax relief from HMRC for unreimbursed household expenses incurred while working from home. However, eligible claims for earlier tax years may still be possible, employers can still reimburse qualifying homeworking costs tax-free, and separate rules continue to apply to the self-employed.
Who Can Claim Working From Home Tax Relief?
The answer depends on whether you are an employee, are being reimbursed by your employer, or work for yourself.
Employees
Employees can no longer claim an Income Tax deduction from HMRC for their own additional household costs of working from home for 2026/27 onwards.
Previous Tax Years
Eligible employees may still be able to claim working from home tax relief for earlier tax years where the normal HMRC claim deadline has not expired.
Employer Reimbursement
Employers can continue to reimburse qualifying additional household costs tax-free where the relevant homeworking conditions are satisfied.
Self-Employed
Sole traders can continue to deduct qualifying business use-of-home expenses, including through HMRC simplified expenses where eligible.
Working From Home Tax Relief for Employees
Historically, an employee who was required to work from home could potentially claim tax relief for additional household expenses that were not reimbursed by their employer.
This changed from 6 April 2026. Employees can no longer claim an Income Tax deduction from HMRC for their unreimbursed additional household expenses of working at home.
Important distinction: the change removes the employee's ability to claim these unreimbursed expenses from HMRC. It does not mean every tax rule relating to working from home has disappeared.
In particular, separate rules continue to apply where an employer pays or reimburses qualifying additional household expenses. Different rules also apply to self-employed individuals.
Can I Claim Working From Home Tax Relief for Previous Years?
Potentially, yes. The removal of the employee deduction from April 2026 does not automatically prevent a valid claim relating to an earlier tax year.
An eligible employee may still be able to claim for an earlier tax year where the normal HMRC claim deadline has not expired. However, you must satisfy the rules that applied to the tax year being claimed.
You may have qualified where:
- Your job required you to work from home.
- Your employer did not have suitable premises available.
- You incurred additional household costs because of homeworking.
- Your employer did not reimburse those qualifying costs in full.
You generally could not claim where:
- You simply chose to work from home.
- Homeworking was optional under a hybrid working arrangement.
- Your employer had suitable premises available for you.
- Your employer had already reimbursed the qualifying costs.
What Happened to the £6 a Week Working From Home Tax Relief?
The £6 figure is often misunderstood. It represented the amount of qualifying weekly expense on which an eligible employee could receive tax relief — it was not a £6 weekly payment from HMRC.
For eligible periods before 6 April 2026, qualifying employees could use a flat rate of £6 per week rather than calculating the precise additional household costs.
The actual saving depended on the employee's marginal Income Tax rate.
| Income Tax Rate | Calculation | Weekly Tax Saving | Illustrative Annual Saving* |
|---|---|---|---|
| 20% | 20% × £6 | £1.20 | £62.40 |
| 40% | 40% × £6 | £2.40 | £124.80 |
| 45% | 45% × £6 | £2.70 | £140.40 |
*Based on 52 weeks for illustration only. Actual relief depends on eligibility, the relevant tax year and individual circumstances.
Can My Employer Still Pay Working From Home Expenses?
Yes. Employer reimbursement is separate from an employee making their own tax-relief claim to HMRC.
Employers can continue to pay or reimburse reasonable additional household expenses arising from a qualifying homeworking arrangement without deducting Income Tax or National Insurance, provided the relevant conditions are met.
HMRC's guideline rate is currently £6 per week or £26 per month for qualifying homeworking arrangements.
An employer may potentially reimburse a higher amount where it represents reasonable additional household expenses and suitable evidence is retained.
Employee working regularly from home
Sarah works from home under a qualifying homeworking arrangement. Instead of Sarah attempting to claim homeworking expenses from HMRC, her employer contributes towards the additional household costs she incurs.
Subject to HMRC's conditions, the employer may be able to make the qualifying payment without Income Tax or National Insurance being charged.
Working From Home Tax Relief for the Self-Employed
The April 2026 change to employee tax relief does not prevent self-employed people from claiming qualifying business use-of-home expenses.
If you are a sole trader or qualifying partnership and use your home for business, you can generally calculate the allowable expense using either actual costs or HMRC's simplified expenses.
HMRC simplified expenses
The simplified homeworking rate can be used where you work from home for 25 hours or more during a month.
Telephone and internet: these are not included within the simplified homeworking flat rate. The appropriate business proportion may be calculated separately.
Simplified expenses are available to sole traders and business partnerships where none of the partners is a company. They are not available to limited companies.
What Working From Home Expenses Can the Self-Employed Claim?
Instead of using simplified expenses, you can calculate the actual business proportion of relevant household expenditure.
Depending on the circumstances, potentially allowable costs can include:
- Heating and electricity.
- Business telephone calls.
- The business proportion of internet costs.
- Rent.
- Council Tax.
- Mortgage interest — but not capital mortgage repayments.
- Relevant home insurance costs.
- Repairs relating to the part of the property used for business.
Only the business proportion is deductible. The calculation should be reasonable and reflect factors such as the rooms used, the time spent working there and the nature of the particular expense.
Using one room as a home office
A sole trader uses one room of a five-room property as an office, but the room is also used privately outside working hours.
Claiming 20% of every household expense would not necessarily produce the correct deduction. The calculation should also reflect how long the room is used for business and whether each particular household cost actually relates to that business use.
Working From Home Through a Limited Company
Limited companies are subject to different rules from sole traders, so the self-employed simplified expense rates cannot simply be claimed against company profits.
Depending on the circumstances, a company may instead be able to reimburse a director or employee for qualifying additional household expenses under the homeworking rules.
More formal arrangements — such as charging your company rent for the use of part of your home as an office — can have wider tax implications and should be considered carefully.
Director tip: do not treat a director's homeworking expenses as though the limited company were a sole-trader business. The company's expense and the director's personal tax position need to be considered separately.
Working From Home Tax Rules Compared
The main rules can be summarised as follows.
Working From Home Tax Relief FAQs
Quick answers to the most common questions about working from home tax relief and expenses.
Can I claim working from home tax relief in 2026/27?
If you are an employee, you can no longer claim an Income Tax deduction from HMRC for additional household expenses of working from home from 6 April 2026. Separate rules apply to employer reimbursements and self-employed business expenses.
Has working from home tax relief been abolished?
The employee deduction for unreimbursed additional household expenses was removed from 6 April 2026. Eligible historic employee claims, employer reimbursements and self-employed business expenses are separate matters.
Can I still claim £6 a week for working from home?
Employees cannot claim the £6-per-week homeworking expense deduction for 2026/27 onwards. The £6 rate can still be relevant to eligible earlier claims and qualifying payments made by employers under the separate employer homeworking rules.
Can I claim working from home tax relief for previous years?
Potentially. Eligible claims for earlier tax years may still be possible within HMRC's normal claim deadline. You must satisfy the eligibility rules applying to the particular tax year.
Can I claim if I chose to work from home?
For historic employee claims, voluntarily choosing to work from home generally did not qualify. The employee normally needed to be required to work from home. From 6 April 2026, the employee homeworking household expense deduction is no longer available.
Can my employer pay me £6 a week for working from home?
Potentially, yes. Employers can continue to make qualifying tax-free payments towards reasonable additional household costs under an eligible homeworking arrangement. HMRC's guideline rate is £6 per week or £26 per month.
Can self-employed people claim working from home expenses?
Yes. Self-employed people can generally deduct the allowable business proportion of relevant household costs. Eligible sole traders and qualifying partnerships can alternatively use HMRC simplified expenses where the conditions are met.
How much can a self-employed person claim for working from home?
HMRC simplified expenses currently provide monthly flat rates of £10 for 25–50 hours, £18 for 51–100 hours and £26 for 101 hours or more of business use at home each month. Alternatively, actual allowable costs can be calculated.
Can I claim broadband costs when working from home?
A self-employed person may be able to claim the appropriate business proportion of telephone and internet costs. These costs are not included in HMRC's simplified homeworking flat rate and may therefore need to be calculated separately.
Can a limited company use the self-employed homeworking allowance?
No. HMRC's self-employed simplified expenses scheme is not available to limited companies. Directors and companies should instead consider the separate rules applying to employer reimbursements and company expenses.
Working From Home Tax Relief: Key Points
- Employee working from home tax relief changed from 6 April 2026.
- Employees can no longer claim unreimbursed household homeworking expenses from HMRC for 2026/27 onwards.
- Eligible claims relating to previous tax years may still be possible within HMRC's normal time limits.
- Employers can still reimburse qualifying additional homeworking expenses under separate rules.
- Self-employed people can continue to claim allowable business use-of-home expenses.
- Self-employed simplified expenses begin where you work from home for at least 25 hours in a month.
- Limited companies cannot use the self-employed simplified expenses scheme.
Need Help With Your Tax Return?
Working from home is only one of many expenses that can affect your taxable profit or Self Assessment. Our UK online accountants can help identify allowable expenses and prepare and file your return correctly.
File Your Self AssessmentTax information: This guide reflects the rules applying for the 2026/27 tax year and distinguishes between employee claims, employer-paid homeworking expenses and self-employed business expenses. Tax treatment depends on individual circumstances and tax rules can change.