Working From Home Tax Relief UK 2025-26
If your employer requires you to work from home, you can claim tax relief on household costs. Here is what you can claim, how much you save, and how to make the claim.
What Is Working From Home Tax Relief?
When you work from home, your household costs increase — higher heating bills, electricity usage, and broadband costs. HMRC allows employees who are required to work from home to claim tax relief on these additional costs, either at a flat rate or based on actual expenses.
This relief reduces your taxable income, meaning you pay less income tax. It does not reduce your National Insurance contributions.
Who Qualifies?
You can claim working from home tax relief if your employer requires you to work from home. This covers situations where:
- Your job cannot be performed from the employer's workplace
- Your employer does not have a suitable office or workspace for you
- Government guidance required you to work from home (e.g. during a pandemic)
You cannot claim this relief simply because you prefer to work from home when an office is available to you. The requirement must come from your employer or the nature of the job.
Self-employed workers are treated differently — they can claim a proportion of actual home running costs as business expenses via their Self Assessment return, rather than using the PAYE flat rate.
The £6 Per Week Flat Rate
For 2025-26, the HMRC-approved flat rate is £6 per week (£312 per year). You do not need to keep receipts or calculate actual costs — you simply claim this amount and HMRC adjusts your tax code accordingly.
How much you actually save depends on your tax rate:
| Tax Rate | Weekly Relief | Annual Saving |
|---|---|---|
| 20% (basic rate) | £1.20/week | £62.40/year |
| 40% (higher rate) | £2.40/week | £124.80/year |
| 45% (additional rate) | £2.70/week | £140.40/year |
The relief works by increasing your tax-free Personal Allowance by £312. If your code is 1257L, it becomes 1288L (approximately), meaning your employer deducts slightly less tax from every pay packet throughout the year.
Claiming More Than the Flat Rate
If your actual additional costs exceed £6 per week, you can claim the higher amount — but you must keep records and evidence. HMRC looks for costs that are wholly, exclusively and necessarily incurred as a result of working from home. Acceptable evidence includes:
- Utility bills (before and after starting to work from home)
- Broadband bills (the business-use proportion)
- Phone bills (calls made for work purposes)
You cannot claim mortgage interest, rent, council tax, or general household repairs — these costs exist regardless of working from home.
What Else Can Employed Workers Claim?
Working from home relief is just one of several expenses employed workers can claim. Others include:
- Professional subscriptions: Membership fees for professional bodies on HMRC's approved list
- Uniforms and protective clothing: Tax relief on the cost of washing or replacing a required uniform
- Tools and equipment: Items you had to buy yourself and use only for work
- Business mileage: If you use your own vehicle for work journeys (not commuting)
How to Claim
For employees, the fastest method is HMRC's online portal:
- Go to gov.uk/tax-relief-for-employees/working-at-home
- Sign in with your Government Gateway account (create one if needed)
- Complete the online claim form
- HMRC updates your tax code — you receive the relief through reduced PAYE deductions
Alternatively, if you complete a Self Assessment tax return, you can include the working from home claim on your return. You can also claim for up to 4 previous tax years, so if you have been working from home since 2021-22 and never claimed, you may be owed several hundred pounds.
Employer-Paid Allowances
Your employer can pay you up to £6 per week (£26 per month) tax-free as a working from home allowance. If they pay this, you cannot also claim the tax relief through HMRC — you would be claiming twice for the same cost. Check your employment contract or ask your payroll department whether you already receive this.
Frequently Asked Questions
How much is the working from home tax relief for 2025-26?
The HMRC flat rate is £6 per week (£312 per year). Basic rate taxpayers save £62.40 per year; higher rate taxpayers save £124.80 per year in income tax.
Who qualifies for working from home tax relief?
You qualify if your employer requires you to work from home — either because your job cannot be done at the office, or your employer does not have a suitable workplace for you. Choosing to work from home when an office is available does not qualify.
How do I claim working from home tax relief?
Employed workers claim via HMRC's online service or through a Self Assessment tax return. HMRC adjusts your tax code to give you the relief through your PAYE pay packets.
Can I claim actual costs instead of the flat rate?
Yes, if your additional costs exceed £6/week you can claim the higher amount with evidence of the extra expenditure. Most employees find the flat rate simpler.