Tax

Working from Home Tax Relief UK 2026 — How to Claim and How Much You Get

Guide to claiming tax relief for working from home in the UK. Who can claim, how much you get, how to apply to HMRC, and what expenses you can deduct.

By PocketWise · · 9 min read

Tax information is based on HMRC rules for the 2026/27 tax year. Tax rules can change — always verify current rates at GOV.UK. This is not tax advice. Consider consulting a qualified tax adviser for your personal situation.

If your employer requires you to work from home, you can claim tax relief on the additional costs — even with the flat-rate method that needs no receipts.

Who Can Claim?

Employed (PAYE)

Situation Can you claim?
Employer requires you to work from home (in your contract) Yes
No office space available for you Yes
Nature of your job requires home working Yes
You choose to work from home (employer allows it as a perk) No
You work from home to avoid commuting No
Hybrid working — employer requires some days at home Yes — for the days you are required to be at home

The key test: Your employer must require it, not just permit it. HMRC checks whether reasonable facilities in an employer’s premises are available for you.

Self-Employed

Situation Can you claim?
You work from home and are self-employed Yes — through Self Assessment
You use a room for business (even part-time) Yes
You have a separate home office Yes

Self-employed people have more flexible rules — see the section below.

How Much Can You Claim? — Employed

Option 1: Flat Rate (No Receipts Needed)

Detail Amount
Flat rate £6 per week (£312 per year)
Tax saving (basic rate — 20%) £62.40 per year
Tax saving (higher rate — 40%) £124.80 per year
Tax saving (additional rate — 45%) £140.40 per year
Receipts needed? No
Evidence needed? You must genuinely be required to work from home

This is the simplest option and suits most people. You do not need to prove your extra costs — HMRC accepts £6/week as a reasonable allowance.

Option 2: Actual Costs

If your actual additional costs are higher than £6/week, you can claim the exact amount — but you need evidence.

Claimable cost Example
Heating (extra) Proportion of gas/electricity for the room you use
Electricity (extra) Cost of running equipment, lighting
Metered water (extra) If applicable
Business phone calls Calls made for work (not line rental)
Internet (proportion) The business-use portion of your broadband
NOT claimable Reason
Mortgage or rent Personal housing cost — not an additional expense of working from home
Council tax Personal cost
Food and drink Personal cost
Commuting costs saved Not a cost you’ve incurred
Furniture (desk, chair) May be claimable separately — see below

Calculating Actual Costs

Step Method
1 Identify the room(s) used for work
2 Calculate the proportion of the house (e.g. 1 room of 5 rooms = 20%)
3 Apply that proportion to your gas/electricity/water bills for the period you worked from home
4 Deduct any amount already covered by your employer

Caution: If you designate a room exclusively for work, this could have Capital Gains Tax implications when you sell the property. Using a room for mixed purposes (work and personal) avoids this issue.

How to Claim — Step by Step

Online (Quickest)

Step Action
1 Go to gov.uk/tax-relief-for-employees/working-at-home
2 Sign in with Government Gateway
3 Confirm you are required to work from home by your employer
4 Choose flat rate or actual costs
5 HMRC adjusts your tax code — you pay less tax automatically
6 Takes effect within a few weeks

Through Self Assessment

If you file a Self Assessment tax return, add the claim on the Employment pages (box for expenses). Include the working from home allowance or actual costs as appropriate.

By Phone or Post

Method Details
Phone 0300 200 3300
Post Form P87 for amounts under £2,500 — download from gov.uk

Claiming for Previous Years

You can claim up to 4 years back. If you were required to work from home in 2022/23, 2023/24, or 2024/25 and didn’t claim, you can still do so now.

Tax year Deadline to claim
2022/23 5 April 2027
2023/24 5 April 2028
2024/25 5 April 2029
2025/26 5 April 2030

Equipment and Furniture

If Your Employer Provides Equipment

Situation Tax implication
Employer provides laptop, monitor, chair No tax on you — provided it is mainly for work use
Employer reimburses you for equipment Check — may be tax-free if it’s a business expense
You buy equipment yourself May be able to claim tax relief (see below)

If You Buy Equipment Yourself

Item Claimable?
Desk, chair, monitor (used substantially for work) Yes — claim the full cost or capital allowances
Stationery, printer cartridges Yes
Computer (if required and substantially for work) Potentially — but HMRC may argue it’s for personal use too
Phone or broadband upgrade Only the additional cost attributable to work

Claims for equipment go on form P87 (if under £2,500 total expenses) or your Self Assessment return.

Self-Employed — Working from Home

Self-employed people have two options:

Option A: Simplified Expenses (Flat Rate)

Hours worked at home per month Flat rate deduction
25–50 hours £10/month
51–100 hours £18/month
101+ hours £26/month (£312/year)

No receipts needed. Claim on your Self Assessment tax return.

Option B: Actual Costs (Proportion Method)

Step Action
1 Calculate total household costs (gas, electricity, water, broadband, council tax, insurance, rent/mortgage interest)
2 Determine the proportion used for business (by room or time)
3 Claim that proportion on your Self Assessment
Example Calculation
Total household running costs £12,000/year
Business room = 1 of 5 rooms = 20% £2,400
Used for business 50% of the time £1,200 claimable

For most self-employed people working from home full-time, the actual proportion method gives a higher deduction than simplified expenses. But it requires more record-keeping.

Related: Self-Employment Tax Guide

Employer Reimbursement

Scenario Tax treatment
Employer pays you up to £6/week (£26/month) for working from home Tax-free — no need to claim
Employer pays you more than £6/week Amount above £6/week may be taxable unless you can prove actual costs
Employer pays nothing You claim tax relief from HMRC yourself

Check your payslip — some employers already pay a working from home allowance. If so, you cannot claim tax relief on the same costs.

Common Mistakes

Mistake Result
Claiming when you’re not required to work from home HMRC may reject the claim and ask for repayment
Claiming the COVID-era flat rate (which was more generous) The temporary COVID scheme ended April 2022 — standard rules now apply
Not checking whether your employer already reimburses you You cannot claim relief on costs your employer covers
Designating a room exclusively for work Potential CGT issue when selling your property
Forgetting to claim for previous years You can go back 4 years — don’t leave money on the table

Quick Summary

Your status Best route Amount
Employed — required to work from home Flat rate — £6/week via gov.uk £62.40/year saving (basic rate)
Employed — higher costs Actual costs via P87 or Self Assessment Variable
Self-employed — simple Simplified expenses — £10-£26/month Up to £312/year
Self-employed — higher costs Proportion method via Self Assessment Variable — often £1,000–£2,000+

Hybrid Workers — Special Rules

Many people now work partly from home and partly in the office. Here’s how the rules apply:

Working Pattern Can You Claim? Notes
5 days home (employer requires) Yes — full £6/week Best case
3 days home, 2 office (employer requires home days) Yes — for home days Claim proportionally
2 days home (your choice), 3 office No Must be required by employer
Some days home when office unavailable Yes — for those days Even if irregular
Contractually home-based Yes Contract is your evidence

Tips for Hybrid Workers

Tip Why
Check your contract Does it specify home working?
Ask HR for confirmation in writing Useful if HMRC queries the claim
Keep a log of home working days Supports actual costs claim
Don’t claim for voluntary home days HMRC may reject the whole claim

Directors and Company Owners

If you’re a director of your own limited company, the rules differ:

Scenario Recommended Approach
Director of own company, work from home Company pays you £6/week tax-free — this is a business expense
Director with home as registered office Can additionally claim use of home as office
Director — higher costs Company can reimburse actual costs — needs evidence

Setting Up Home Working Allowance Through Your Company

Step Action
1 Board minute confirming home working requirement
2 Add £6/week (£26/month) to salary — mark as expenses
3 This is tax-free for you and a deductible cost for the company
4 For amounts over £6/week — keep detailed records

Rent a Room to Your Company

Some directors rent a room in their home to their company. This uses different rules:

Consideration Details
Market rate rent Must be reasonable (typically £200-£400/month for a room)
Rent a Room Scheme Personal tax-free up to £7,500/year
Corporation Tax deduction Company deducts the rent
Documentation Need proper licence/rental agreement

Caution: Get accountant advice — this arrangement has specific requirements.

What Counts as “Required” to Work From Home?

HMRC is strict about this. Here’s the detail:

Situation Counts as Required? Why
Contract states you must work from home Yes Written requirement
Employer closed office/no desk space Yes Facilities not available
Job cannot be done at employer’s premises Yes Inherent in the role
Employer encourages home working No Encouragement ≠ requirement
You prefer working from home No Personal preference
Commute is inconvenient No Travel issues don’t count
Disability/health reason Maybe If employer confirms accommodation
Childcare reasons No Personal circumstance

How HMRC Checks

Check What They Look For
Employment contract Home working clauses
Employer policy documents Official WFH policy
Whether office space exists If desk is available, harder to claim
Pattern of work Consistent home working suggests requirement

Claiming for Equipment — Full Details

You can claim for business equipment separately from the £6/week allowance:

Item Claimable? Notes
Desk Yes If needed for work
Office chair Yes Ergonomic needs are valid
Monitor/screen Yes If employer doesn’t provide
Keyboard, mouse Yes If employer doesn’t provide
Webcam, headset Yes Required for remote meetings
Laptop/computer Usually no Typically employer provides; partial use is tricky
Printer Maybe Only if needed for work
Stationery Yes Paper, ink, pens
Bookshelf for work materials Yes If used for work
Software subscriptions Maybe Only if not provided by employer
Broadband upgrade Partial Only additional cost for work

How to Claim for Equipment

Expense Total Method
Under £2,500 (including WFH allowance) Form P87
Over £2,500 Must file Self Assessment
Any amount (if already doing SA) Add to Employment section
Step Action
1 Keep all receipts
2 Note the date and what the item is for
3 Claim via P87 or Self Assessment
4 Tax relief given = cost × your tax rate (20%, 40%, or 45%)

Detailed Example — Maximising Your Claim

Employee on £35,000 Salary, Basic Rate Taxpayer

Expense Amount Tax Relief (20%)
Flat rate home working (52 weeks × £6) £312 £62.40
Office desk £200 £40.00
Office chair £150 £30.00
Monitor £180 £36.00
Webcam and headset £80 £16.00
Total claimable £922 £184.40

Filing method: Form P87 (under £2,500 total)

Employee on £60,000, Higher Rate Taxpayer

Same expenses but 40% tax relief:

Expense Amount Tax Relief (40%)
Flat rate home working £312 £124.80
Office desk £200 £80.00
Office chair £150 £60.00
Monitor £180 £72.00
Webcam and headset £80 £32.00
Total claimable £922 £368.80

Sources

  1. HMRC — Working from home tax relief