Working From Home Tax Relief UK 2025
Claim HMRC tax relief for additional costs when you work from home. The flat rate is £6 per week — you could receive up to £124.80 back per year and backdate up to four tax years.
Contents
Who Can Claim Working From Home Tax Relief?
HMRC allows employees to claim tax relief on additional household costs when they are required to work from home by their employer. The key word is required — you cannot claim simply because you prefer to work from home or because it is more convenient for you.
You qualify if:
- Your employer requires you to work from home as part of your normal duties
- Your employer has no office, or the nearest office is too far from your home to be practical
- Your role requires you to live and work at home (for example, certain field-based roles)
- You work from home for part of the week due to a formal arrangement with your employer
This relief is available to employees (PAYE workers). Self-employed people have a different, broader set of rules (see the Self-Employed section below). Company directors who are employees of their own company may also be eligible if their home is a genuine workplace.
Flat Rate £6 Per Week Method
The simplest way to claim is using HMRC’s approved flat rate of £6 per week (£312 per year for a full year of home working). You do not need to keep receipts or prove your actual costs — this is a nationally agreed amount that HMRC accepts without evidence.
The flat rate has been £6 per week since April 2020. Before April 2020, it was £4 per week. HMRC reviews this rate periodically. Always check the current HMRC guidance when making a new claim, as the rate could change in future fiscal years.
| Tax Year | Weekly Rate | Annual Allowance | Relief at 20% | Relief at 40% |
|---|---|---|---|---|
| 2020/21 onward | £6.00 | £312 | £62.40 | £124.80 |
| 2019/20 and before | £4.00 | £208 | £41.60 | £83.20 |
If you only worked from home for part of a year, you can claim only for the weeks you were required to work from home. For example, if you worked from home for 30 weeks, your allowance is 30 × £6 = £180, giving £36 back at the 20% rate.
Actual Costs Method
If your genuine additional costs of working from home exceed £6 per week, you can claim the actual costs method instead. This allows you to claim the real additional amount you spent on your household bills due to working from home. However, this requires you to keep receipts and perform a defensible calculation.
Eligible costs include:
- Electricity and gas: The additional heating and lighting costs due to working from home (not what you would use anyway)
- Broadband: Only the business-use proportion — if you already pay for broadband, you can only claim the additional cost attributable to work use
- Water: Only in rare cases where water usage increases materially due to home working
How to calculate actual costs: A common method is to take the total annual bill for a cost (such as electricity), divide it by the number of rooms in your home, then calculate the proportion of time that room is used for work. For example:
- Annual electricity bill: £1,200
- Number of rooms (excluding bathrooms): 5
- Cost per room: £240
- Proportion of time room used for work: 20% (e.g. 8 hours per 40-hour day)
- Claimable amount: £240 × 20% = £48
HMRC expects your methodology to be reasonable and consistent. Keep a record of how you made the calculation in case HMRC queries the claim.
Working From Home Tax Relief Calculator
Estimate Your Tax Relief
How to Claim Working From Home Tax Relief
There are three main routes for employees to claim:
Route 1: HMRC Online Service (Fastest)
Go to gov.uk/tax-relief-for-employees and use the ‘Check if you can claim’ tool. If eligible, you can submit the claim online. HMRC will process it and either send a cheque, pay into your bank account, or adjust your tax code so you pay less tax going forward. Most online claims are processed within a few weeks.
Route 2: P87 Form (Postal/Phone)
If you cannot use the online service, you can complete Form P87 (Tax Relief for Expenses of Employment) and post it to HMRC. You can also phone HMRC on 0300 200 3300 to request a tax code adjustment. The P87 form asks for your employer’s PAYE reference, your National Insurance number, and details of the expenses you are claiming.
Route 3: Self-Assessment Tax Return
If you already complete a self-assessment tax return (for example, because you are also self-employed, or because you earn over £100,000), you include your working from home costs in the employment expenses section of the return. Box 1.32 to 1.35 on the SA102 Employment supplementary page covers expenses not reimbursed by your employer.
COVID-19 Backdated Claims (2020/21 and 2021/22)
During the COVID-19 pandemic, HMRC issued special guidance allowing all employees who worked from home at any point during 2020/21 or 2021/22 to claim the flat rate for the entire tax year, even if they only worked from home for one day. This was a generous interpretation of the rules for those years specifically.
To backdate a claim: use the HMRC online service or submit a P87 for each tax year separately, specifying the tax year in question. You will need to confirm you were required to work from home during that year. For COVID years, HMRC accepted a very low threshold of evidence given the national lockdown circumstances.
| Tax Year | Can Still Claim? | Deadline (approx.) | Max Relief (20%) |
|---|---|---|---|
| 2021/22 | Yes — act now | April 2026 | £62.40 |
| 2022/23 | Yes | April 2027 | £62.40 |
| 2023/24 | Yes | April 2028 | £62.40 |
| 2024/25 | Yes | April 2029 | £62.40 |
| 2020/21 | No — expired | Passed April 2025 | N/A |
Self-Employed: Working From Home Rules
If you are self-employed (a sole trader or in a partnership), you can claim a portion of your home costs as an allowable business expense through your self-assessment tax return. There are two methods:
Simplified Flat Rate Expenses (HMRC Approved)
| Hours worked from home per month | Monthly flat rate you can claim |
|---|---|
| 25 to 50 hours | £10 per month |
| 51 to 100 hours | £18 per month |
| 101 hours or more | £26 per month |
These rates have been fixed since 2013. You claim them on your self-assessment return under ‘use of home as office’. You do not need receipts, but you should keep a record of your hours worked from home each month.
Actual Cost Proportion Method
Alternatively, self-employed people can claim an actual proportion of their household running costs. The calculation typically uses floor area or number of rooms to establish the business percentage, multiplied by the proportion of time the area is used for business. This can result in a larger claim but requires more detailed record-keeping.
Equipment and Router Costs
The working from home allowance covers additional running costs (heat, light, broadband), but equipment is treated separately by HMRC.
Employer-Provided or Reimbursed Equipment
If your employer provides equipment (monitors, keyboards, office chairs, routers) for home use, or reimburses you for equipment you purchased, there is no income tax or National Insurance on the reimbursement — provided the equipment is used primarily for work. This is covered under the HMRC ‘homeworker exemption’ rules.
Equipment You Purchased Yourself (Not Reimbursed)
If you bought equipment yourself and your employer did not reimburse you, you may be able to claim tax relief on the cost under ‘capital allowances for employees’. However, the item must be:
- Used wholly, exclusively, and necessarily for your employment duties
- Not reimbursed by your employer
- Purchased for use in your job, not for personal use
Claim via the P87 form or self-assessment. Note the ‘wholly, exclusively and necessarily’ test is strict — a personal laptop that you also use for private browsing would likely not qualify in full.
Broadband
If you already pay for broadband at home and your employer does not contribute, you generally cannot claim the full cost. You can only claim the additional cost attributable to work use. In most cases, where you would have broadband regardless of working from home, HMRC’s position is that no additional cost arises — so no claim is possible under the flat rate beyond the £6/week allowance which covers this.
Frequently Asked Questions
How much working from home tax relief can I claim in 2025?
The HMRC flat rate is £6 per week (£312 per year for a full year). At the 20% basic rate, this gives you £62.40 back per year. Higher rate taxpayers at 40% receive £124.80. Additional rate taxpayers at 45% receive £140.40. If your actual additional costs exceed £6 per week, you can use the actual costs method with receipts instead.
Can I claim if I chose to work from home rather than being required to?
No. HMRC only allows employees to claim if they are required to work from home by their employer. If your employer has an office you could use but you prefer working from home, you do not qualify. The requirement must genuinely be part of your job, not a personal lifestyle choice.
How do I claim as an employee?
The fastest route is HMRC’s online service at gov.uk/tax-relief-for-employees. You can also complete a P87 form and post it to HMRC, or include the claim in your self-assessment tax return if you complete one. Most online claims are processed within a few weeks. HMRC will either send a refund or adjust your tax code.
Can I backdate my claim and how far back can I go?
Yes, you can backdate for up to four complete tax years. In February 2026, that means 2021/22, 2022/23, 2023/24, and 2024/25 (if that year has ended). Claims for 2020/21 are now closed. Submit a separate claim or P87 for each tax year you want to backdate.
What actual costs can I claim for working from home?
Employees can claim additional electricity, gas, and broadband costs that arise solely from home working. You cannot claim mortgage interest, rent, council tax, or building insurance. Self-employed people have broader options including a proportion of all household running costs.
Are self-employed people entitled to working from home relief?
Yes. Sole traders can use HMRC’s simplified flat rate (£10–£26 per month depending on hours worked from home) or claim an actual proportion of household costs through self-assessment. The rules are more flexible than for employees, but you need to keep records of hours worked and any costs claimed.
Can I claim for equipment I bought to work from home?
Equipment is claimed separately from the working from home allowance. If your employer reimbursed you, there is no tax to pay. If not reimbursed, you may claim relief via P87 or self-assessment, but the item must be used wholly, exclusively and necessarily for employment. Personal-use items do not qualify.