Working from home tax relief explained
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Quick answer: Employees can claim tax relief on household costs when forced to work from home — flat rate £6 per week or actual extra costs if you keep evidence and qualify under HMRC rules.
Post-pandemic rules tightened, and voluntary home working when your employer offers an office usually does not qualify for employee tax relief. Self-employed people use different expense rules. This guide explains who can claim and how much relief is worth.
Last reviewed:
Read the full work & self-employment guide →Primary source: www.gov.uk/tax-relief-for-employees/working-at-home
Employee flat rate
The flat rate gives tax relief worth £1.20 per week for basic-rate taxpayers on £6, or £2.40 for higher-rate taxpayers. It is modest but easy to claim through HMRC's online service without keeping receipts.
If you have multiple jobs that each require home working, you usually claim once overall rather than separately per employer. Check HMRC guidance if your situation involves more than one employer requiring WFH.
Actual costs
The actual cost method requires you to calculate extra utilities from meter readings on days you work at home. It is rarely worth the effort unless you have a large dedicated office consuming significant power.
If your employer reimburses you up to £6 per week tax-free, you cannot also claim tax relief on the same costs. Choose whichever route gives you the better outcome.
Self-employed contrast
Self-employed people can apportion rent, council tax and utilities by room size and hours worked, or use the simplified £6 weekly rate without receipts. The rules are more generous than for employees.
Limited company directors follow employee rules for their employment income and separate company rules for expenses the company pays. Do not mix personal and company claims.
Common questions
Can I claim for equipment?
Your employer should provide necessary equipment for home working. If you buy essential items yourself and are not reimbursed, separate capital allowance rules may apply in rare cases for employees.
Does it affect capital gains tax?
Principal private residence relief is usually protected if your home office is not used exclusively for business. A room used solely for work could affect CGT private residence relief when you sell.
What about hybrid working?
If your employer requires some home working days as part of your contract, you may qualify even if you also attend the office. Check HMRC guidance for your specific arrangement.