How to Claim Work-from-Home Tax Relief in the UK

13 Mar

If you work from home, you may be eligible for tax relief to help cover additional household expenses. Whether you're a full-time remote worker or occasionally work from home, here’s what you need to know about claiming work-from-home tax relief in the UK.

1. Who Can Claim Work-from-Home Tax Relief?

You can claim tax relief if:

Your employer requires you to work from home (full-time or part-time).
You incur additional costs due to home working (e.g., heating, electricity, broadband).
You are not reimbursed by your employer for these costs.

You cannot claim if you choose to work from home when your employer provides a workplace.

2. How Much Tax Relief Can You Get?

The government allows you to claim a flat rate of £6 per week (£312 per year) without needing to provide receipts. This equates to:

£62.40 per year for basic-rate taxpayers (20%)
£124.80 per year for higher-rate taxpayers (40%)

Alternatively, you can claim the actual additional costs of working from home, but you must provide evidence such as bills and receipts.

For a full breakdown of work-from-home expenses, check out How Much Does Working from Home Cost?.

3. How to Apply for Work-from-Home Tax Relief

You can apply:

Online via the HMRC website.
Through your employer (if they adjust your tax code).
By self-assessment if you file a tax return.

4. What Expenses Can You Claim?

If opting for the actual costs method, you may be able to claim for:

Increased utility bills (electricity, heating, water)
Business phone calls & internet costs (not personal use)
Office equipment (if not reimbursed by your employer)

For more on setting up a cost-effective workspace, read How Much Does It Cost to Set Up a Home Office?.

5. Additional Tax Benefits for Home Workers

Self-employed? You can deduct home office expenses as business costs.
Employer reimbursement? If your employer reimburses costs up to £6/week, you don’t need to claim tax relief.
Council tax & mortgage impact? Generally, occasional home working does not affect council tax or mortgage rates, but running a full business from home might.

Final Thoughts

Claiming work-from-home tax relief is a simple way to offset additional costs. Whether you claim the flat rate or actual expenses, make sure you’re taking advantage of the savings available.

Want to cut even more costs? Read How Much Electricity Does a Home Office Use? for energy-saving tips.