If you work from home regularly, you may be able to claim tax relief on extra household costs like heating and electricity.

In this guide, we’ll explain who can claim, what expenses qualify, and how to apply for working from home tax relief under the latest rules.

What is Working from Home Tax Relief?

Working from home tax relief helps employees claim back some of the extra household costs they incur due to their job. This includes expenses like additional heating, electricity, and business phone calls that arise from working remotely.

It’s important to distinguish between employer allowances and HMRC tax relief. Some employers offer a work-from-home allowance to help cover these costs. If your employer fully reimburses your expenses, you cannot claim tax relief from HMRC.

However, if your employer only partially reimburses you or doesn’t provide any allowance, you may be eligible to claim tax relief on the remaining costs.

Who Can Claim Working from Home Tax Relief?

Working from home (WFH) tax relief has strict eligibility criteria and is generally only available to employees who are required to work from home by their employer.

Eligibility Criteria (2025/26)

You are eligible for tax relief in the 2025/26 tax year only if both of the following apply:

• Your employer requires you to work from home as part of your job (e.g., they do not have an office or you must live far from the office).
• You have incurred additional household costs as a result (e.g. heating, electricity) which have not been reimbursed by your employer. 

You cannot claim if you: 

• Choose to work from home.
• Work a hybrid pattern where your employer provides an office you could use.
• Are working from home solely due to health reasons 

What About Hybrid Working?

If your employer requires you to split your time between home and the office, you may still be eligible to claim tax relief for the days you work from home, provided it’s a requirement of your role and not just convenience.

Under these conditions, you can claim the flat rate allowance of £6 per week (pro-rated for the days you work from home) to cover additional costs like heating, electricity, and internet usage.

However, if your employer fully reimburses your homeworking expenses or if working from home is optional, you cannot claim tax relief.

What Expenses Can You Claim?

You can claim tax relief only on additional household costs that are wholly and exclusively for work purposes. This means the expense must be directly related to your job and not for personal use.

Examples of Claimable Expenses

• Business phone calls made exclusively for work.
• Additional gas, electricity, heating, or water costs for your work area.
• Internet costs, but only if you didn’t have internet before working from home or if your usage has increased due to work.
• Cleaning costs specifically for your work area.
• Office supplies like stationery and printer ink used solely for work.

What You Cannot Claim

• Rent, mortgage payments, or broadband costs used for both personal and work purposes.
• Home office furniture and equipment, as these are usually either disallowed or treated as a taxable benefit if provided by your employer.
• Expenses fully reimbursed by your employer. If you receive partial reimbursement, you can claim tax relief on the unreimbursed portion.

How Much Can You Claim?

For the 2024/25 tax year, you can claim working from home tax relief in two ways:

Flat rate allowance: £6 per week (up to £312 per year) without needing to provide evidence of your actual expenses.

Exact amount spent: You can claim the precise additional costs you’ve incurred, but you must provide receipts or bills as evidence.

The tax relief you receive depends on your income tax rate:

• Basic rate taxpayers (20%) get 20% of the amount claimed.
• Higher rate taxpayers (40%) get 40%.
• Additional rate taxpayers (45%) get 45%.

Example:

If you claim the flat rate of £6 per week and pay the basic tax rate, you would receive £1.20 per week in tax relief (20% of £6).

How to Claim Working from Home Tax Relief

Claiming via Self Assessment

If you complete a Self Assessment tax return, you should include your working from home tax relief claim within it. You can claim either the flat rate allowance or the exact amount spent, providing evidence if required.

Using HMRC’s Online Service

If you do not file a Self Assessment return, you can use HMRC’s online service to check your eligibility and submit a claim for working from home tax relief.

Evidence Requirements

• For the flat rate allowance (£6 per week), you must provide evidence that you are required to work from home.
• For claims based on actual expenses, you need to submit receipts or bills to prove your costs.

Adjustments to Your Tax Code

For claims related to the current tax year, HMRC will usually adjust your tax code to reduce the tax you pay throughout the year.

Claiming for Previous Years

You can claim working from home tax relief for the current tax year and up to four previous tax years. HMRC may adjust your tax code or issue a refund for any overpaid tax.

Why Did HMRC Change the Rules?

During the Covid-19 pandemic, HMRC introduced temporary, relaxed rules allowing many employees to claim working from home tax relief due to widespread remote working mandates. 

This helped support those forced to work remotely by government restrictions.

Now that pandemic restrictions have lifted, HMRC has tightened eligibility criteria.

The relief is now focused on employees who are genuinely required to work from home because of their job, such as those without an office or with unreasonable commutes, rather than those working from home out of convenience or choice.

This shift ensures the tax relief is targeted at those who truly need it, preventing claims based solely on flexible or voluntary homeworking arrangements.

Special Considerations for Limited Company Directors

If you’re a limited company director working from home, you can still claim tax relief on additional household expenses related to your work, even if your company’s registered office is at a different address.

However, it’s important to note:

• Any expenses reimbursed by your company cannot be claimed again as tax relief.
• If your company provides equipment or furniture for your home office, this may be treated as a taxable benefit.
• Proper records and evidence of your additional costs are essential to support your claim.

Consulting one of our experts at TAX VAT ACCOUNATANTS can help ensure you claim correctly and comply with HMRC rules.

Visit: https://taxvatreturn.co.uk

Email: info@taxvatreturn.co.uk

Call: 01284 332375