Working From Home Tax Relief UK 2025-26: HMRC Flat Rate and Actual Cost Method
Millions of UK workers claimed working from home tax relief during the COVID-19 pandemic — including for a single day of home working. Those relaxed rules have long since ended. In 2025-26, the eligibility criteria are stricter and based on HMRC's original pre-pandemic rules. Here is who can still claim and how much.
Who qualifies for WFH tax relief in 2025-26?
You can claim working from home tax relief if your employer requires you to work from home — not merely permits or encourages it. The key tests are:
- Your employer does not have a permanent workplace for you to attend
- You are required to perform substantive duties at home (not just checking emails)
- You bear the costs of working from home personally (electricity, heating, broadband)
If your employer offers flexible or hybrid working but you could go into an office, HMRC considers you to be choosing to work from home — and you do not qualify.
The flat rate: £6 per week
HMRC's approved flat rate for working from home is £6 per week (£26 per month, £312 per year). You do not need to keep receipts or calculate actual costs to claim this amount.
Tax relief on the flat rate depends on your tax band:
- Basic Rate taxpayer (20%): £312 × 20% = £62.40 per year
- Higher Rate taxpayer (40%): £312 × 40% = £124.80 per year
The actual cost method
If your additional home costs are higher than the flat rate (for example, you work in a dedicated home office with significant heating and electricity costs), you can claim actual costs. You must calculate the business proportion of your total home running costs using a reasonable method — typically the number of rooms used for work as a fraction of total rooms, multiplied by the hours worked.
This method requires careful record-keeping and HMRC may query large claims. For most employees, the flat rate is simpler and lower risk.
Employer WFH allowance: tax-free £6/week
Separately, an employer can pay employees up to £6 per week tax-free as a contribution to home working costs. This is an employer payment, not a tax relief claim — it does not go through Self Assessment or P87. If your employer already pays you this amount, you cannot also claim the relief.
How to claim WFH tax relief
- Not in Self Assessment: use a P87 form (HMRC online or paper)
- In Self Assessment: include working from home expenses on your tax return
- HMRC will adjust your PAYE tax code to collect the relief going forward
Frequently asked questions
Can I claim WFH relief for hybrid working?
Only if your employer requires home working for some or all of your working pattern. If working from home is optional, HMRC does not consider the costs to be necessarily incurred and the relief cannot be claimed.
How far back can I claim WFH relief?
You can backdate claims for up to four prior tax years — so in 2025-26, you can claim back to 2021-22. Each year must meet the eligibility criteria in its own right.
Does WFH relief apply to the self-employed?
The self-employed have different rules — they can deduct home office costs as business expenses on their Self Assessment return, using either the flat rate method or a proportion of actual costs.