Self Assessment Tax Return

Work from Home Tax Relief - 2026 Guide

Working from home tax relief lets UK employees and self-employed individuals offset additional household costs against their tax bill. HMRC's flat rate is £6 per week (£312 per year) with no receipts required, or you can claim a proportion of actual household bills if higher. Employees must be required to work from home by their employer. Self-employed workers can also use simplified expenses based on monthly hours.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 11

Key takeaways

HMRC's flat rate for working from home is £6 per week (£312 per year), claimable without receipts by employees and limited company directors since 6 April 2020.
Employees only qualify if their employer requires them to work from home or has no suitable office. Choosing to work remotely does not qualify for relief.
Self-employed individuals can use simplified expenses of £10, £18 or £26 per month depending on whether they work 25-50, 51-100 or 101-plus hours from home.
Employers can pay employees up to £6 per week tax-free for additional home-working costs without supporting evidence, or more with proof of actual expenses.
The COVID-19 blanket working-from-home relief ended on 5 April 2022. From 2022/23 onwards, the standard HMRC eligibility test requiring the employer to mandate home working applies again.

Tax Relief Working at Home

The way we work has transformed significantly over the past few years, with remote work becoming the new norm for many. When you run your own limited company or operate as a sole trader, using a home office becomes a common practice. As a UK contractor, limited company owner, or small business owner, you might work from home occasionally or even regularly, due to which, your expenses often increase due to the extra use of electricity and the internet.

Understanding the tax relief for home workers is crucial. If you work from home, you may be able to claim certain expenses and reduce your tax bill. This could save you money and make your home working setup even more beneficial. However, the government has updated the criteria for the 2025/26 tax year.

In this guide, we will explain everything you need to know about working from home tax relief and how to make the most of the tax relief available to you as a remote home worker. Whether you're new to working from home or have been doing it for years, this guide will help you understand the tax implications and keep more of your hard-earned money in your pocket.

What is Working from Home (WFH) Tax Relief?

Working from home tax relief allows self-employed individuals and contractors to claim back some of the expenses they incur wholly for the business use while working remotely. These expenses include costs for:

Heating
Electricity
Business phone calls
Gas
Water
Broadband
Office supplies
Business equipment repairs
Cleaning

Essentially, tax relief helps to reduce the amount of tax you owe, giving you some financial relief for the extra costs you bear while working from home.

For self-employed individuals, you can claim a portion of your home expenses, such as utilities, mortgage interest, and even rent, based on the space and time you use for work.

Limited company owners can also benefit by having their company reimburse them for home office expenses, ensuring these are deducted from the company's taxable profits.

Contractors operating through a limited company or as self-employed can take advantage of similar reliefs, ensuring that the costs of working from home do not impact their personal finances negatively.

Importance of Claiming Tax Relief Working at Home

Let’s understand why it is important to claim tax relief:

Maximising Take-Home Pay: Claiming tax relief allows you to deduct a portion of your home expenses from your income tax, which can increase your take-home pay. This means you keep more of what you earn.
Covered Costs: You can claim back costs such as heating, electricity, internet, and rent or mortgage interest. These are necessary expenses for running your business from home, and tax relief ensures you're not bearing these costs alone.
Increased Disposable Income: By reducing the amount of tax you owe, tax relief increases your disposable income. This extra cash can be reinvested into your business or used to cover other essential expenses.
Legal Entitlement: Tax relief for home workers is a legal entitlement. By claiming it, you ensure you're taking full advantage of the benefits available to you under the law.

Benefits of Claiming WFH Tax Rebate

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Reduced Financial Burden: Tax relief can significantly reduce the financial burden of increased home expenses and help manage your household budget.
Savings on Essential Costs: By claiming relief on specific work-related expenses, you can save money on essential costs.
Investment in Growth: The money saved through tax relief can be reinvested into your business. Whether it’s upgrading equipment, marketing, or professional development, these investments can help grow your business.‍
Simplified Tax Filing: The availability of a standard allowance, like the £6 per week flat rate, simplifies the process of claiming tax relief. This makes it easier for self-employed individuals to file their tax returns accurately and efficiently.

What to Consider for Use of Home as Office Allowance 2025/26

If you run a limited company, you can claim home office expenses as part of your business costs. HMRC refers to this as the "use of home office allowance. For limited company owners, you can claim tax relief for working from home through your business. If you are self-employed, you can claim this relief on your tax return. If you are an employee whose employer does not reimburse you for working from home, you can still claim the use of home tax allowance on your tax return.

Here are key points to remember when claiming for using your home as an office:

If you are self-employed, you will save on basic or higher rate tax and national insurance.
If you are claiming for home office use as a limited company, the cost will save Corporation Tax.

Who can Claim Working from Home Tax Relief

You can claim tax relief for working from home if you meet certain conditions set by HMRC. Specifically, you qualify if you have to work from home because:

Your work requires you to live far away from your office.
You or your employer doesn’t have a business office.
Your employer has not already paid your expenses and you have additional household costs as a result of working from home
Your employer's premises do not have the necessary facilities for you to do your job.
Your job requires you to travel an unreasonable distance to and from your employer's premises every day.
Government restrictions require you to work from home.

Example Scenario: John’s employer does not have an office, so he must work from home to perform his duties. He incurs additional broadband costs to handle his work responsibilities. Since there is no office provided by his employer, John is eligible to claim tax relief.

Who Cannot Claim Tax Relief

You cannot claim tax relief if you choose to work from home under the following circumstances:

Your employment contract allows you to work from home some or all of the time, but it is not a requirement.
You work from home due to the coronavirus (COVID-19) pandemic.
Your employer has an office, but you cannot go there sometimes because it’s full.

Example Scenario: Emily’s contract allows her to work from home two days a week. She incurs additional heating costs on those days. Because Emily chooses to work from home and it is not a requirement, she does not qualify for working from home tax relief.

How to Calculate Your Tax Relief

Ways to Calculate Your Working from Home Expenses

1. HMRC's Guideline Allowance

Without any need for justification, you can claim £6 per week for the use of your home for business purposes. This allowance applies from 6 April 2020 onwards.
This flat rate is straightforward and requires no evidence of additional costs, making it easy to claim. Over a year, this adds up to just over £300, which is designed to cover basic administrative tasks completed from home.

2. Usage Calculation for Higher Claims

If you work from home extensively, you might incur higher costs than the HMRC’s flat rate covers. In such cases, you can claim more by providing evidence like receipts, bills, or contracts.
To calculate the exact amount of extra costs incurred above the weekly flat rate, use the following formula:

(B + (D% x C) / A) x E

Where:

A = Total number of rooms in your home.
B = Number of rooms dedicated solely to business use.
C = Number of rooms used partly for business and partly for personal use.
D = Percentage of time the rooms are used for business compared to personal use.
E = Total home expenditures (e.g., water and sewerage, heating, lighting).

Example Calculation

Let’s say you have a home with 5 rooms. You use 1 room exclusively for business and another room for both business and personal use, with business use occupying 50% of the time. Your total home expenditures, including water, heating, lighting, internet, amount to £2,000 for the year.

Using the formula:

A (Total number of rooms in your home) = 5

B (Number of rooms dedicated solely to business use) = 1

C (Number of rooms used partly for business and partly for personal use) = 1

D (Percentage of time the rooms are used for business compared to personal use) = 50%

E (Total home expenditures) = £2,000

(1 + ((50% + 1) / 5)) X £2,000 = £2,200

In this example, you can claim £2,200 for using your home for business purposes, provided you have the necessary evidence to support your claim.

Types of Expenses That Can Be Included (E)

Water rates
Light and heating costs
Telephone line rental, internet, and cost of calls
Business equipment repairs
Cleaning services

3. HRMC’s Simplified Expenses: You can use HMRC’s simplified expenses option to claim a working from home tax rebate if you meet the following criteria:

You are self-employed.
You work from home for at least 25 hours a month.

You can calculate your allowable expenses using a flat rate based on the hours you work from home each month. This method simplifies the process by eliminating the need to separate personal and business use of your home expenses

These rates apply specifically to self-employed individuals and not to limited company directors. You can claim the following rates based on your monthly work hours.

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Tax Relief Based on Your Tax Rate

You’ll receive tax relief based on the rate at which you pay tax. For example, if you are a basic rate taxpayer (20%), you will save 20% of your allowable expenses.

Working from Home Tax Relief Calculator

Calculating your working from home tax relief has never been easier. Use our Working from Home Tax Relief Calculator below to quickly and accurately determine the amount of tax relief you can claim. This tool simplifies the process, helping you maximise your claim without the hassle of manual calculations.

How to Claim Tax Relief for Working from Home

Claiming Online: Go to the government website to claim tax relief for your job expenses, answer work related questions, login using your Government gateway ID (Create one if you don’t have one), enter the start date and claim.
Claiming Through Self-Assessment: If your expenses are more than £2,500 in some of the tax years you are claiming for, you must claim them as part of a Self Assessment tax return.

How is working from home tax relief paid?

‍1. Tax Rebate for Previous Tax Years

‍If you are eligible for a working from home tax rebate for previous tax years, HMRC will typically issue a cheque for the amount owed. This is a straightforward process where HMRC refunds the excess tax you have paid in prior years due to your working from home expenses.

‍2. Tax Relief for the 2025/26 Tax Year

‍If you are eligible for working from home tax relief for the current tax year, HMRC will adjust your tax code. This adjustment means you will pay less tax on your wages, as the relief is factored into your tax code.

Claim Your Work from Home Tax Relief Today!

Working from home tax relief is a valuable benefit that can help offset the extra costs incurred when working from home. If you are eligible, don’t miss out on claiming this tax relief.

If you’re unsure about how to claim, eligibility criteria or what expenses you can claim, consult our contractor accountants today! Start maximising your working from home tax relief today to take full advantage of the benefits available to you!

Frequently asked questions

Who qualifies for working from home tax relief?

You qualify if your employer requires you to work from home, your employer has no office, or the workplace lacks facilities you need for your role. You must also incur additional household costs such as heating or broadband. Simply choosing to work from home, having a hybrid contract that permits but does not require it, or working remotely because the office is full does not qualify. Self-employed individuals qualify automatically if they use part of their home regularly for business.

How much is the HMRC flat rate for working from home?

HMRC allows a flat rate of £6 per week, equivalent to £312 per year, to cover additional household costs of working from home. No receipts or evidence of actual spending are needed. A basic-rate taxpayer saves £1.20 per week (20% of £6), while a higher-rate taxpayer saves £2.40 per week (40% of £6). This rate has been unchanged since 6 April 2020 and applies to employees, company directors and the self-employed.

Can I claim more than the £6 per week flat rate?

Yes. If your actual additional costs exceed £6 per week, you can calculate the business proportion of your household bills, including gas, electricity, water, broadband and business phone calls. You will need receipts and records to support the higher claim. Divide your home expenses by the number of rooms and the proportion of time each room is used for work. HMRC may ask for evidence, so keep utility bills and a log of your working pattern.

Can my employer pay me tax-free for working from home?

Yes. Employers can pay up to £6 per week (£26 per month) tax-free to cover additional home-working costs, with no supporting evidence required from the employee. If the employer pays more than £6 per week, the excess is only tax-free where the employee can provide evidence of actual additional costs. These payments are not reported on a P11D and do not attract National Insurance. If the employer pays nothing, the employee can claim the relief directly.

What are the simplified expenses rates for self-employed home workers?

Self-employed individuals who work from home at least 25 hours per month can use HMRC simplified expenses instead of calculating actual costs. The flat rates are £10 per month for 25 to 50 hours, £18 per month for 51 to 100 hours, and £26 per month for 101 hours or more. These rates cover heating, lighting, power and internet. They are only available to sole traders and partnerships, not limited company directors.

Can I still claim COVID-era working from home tax relief?

The blanket COVID-19 working-from-home relief ended on 5 April 2022. During 2020/21 and 2021/22, HMRC allowed any employee who worked from home due to the pandemic to claim £6 per week without meeting the usual eligibility test. From 2022/23 onwards, the standard rules apply again: your employer must require you to work from home, or there must be no suitable office. You can still backdate claims for those two COVID tax years within the normal four-year window.

Can I claim tax relief for equipment like a laptop or desk?

Self-employed individuals can claim capital allowances on equipment bought wholly for business use, such as a laptop, desk or office chair. Employees can only claim tax relief on equipment their employer does not provide and that is used exclusively for work. If the employer supplies the equipment, no personal claim is available. Equipment used partly for personal purposes must be apportioned to the business-use percentage. Claims go through Self Assessment or form P87 for employees.

How do I claim working from home tax relief?

Employees with expenses under £2,500 per tax year can claim online using HMRC form P87 or through the GOV.UK portal by adjusting their tax code. If expenses exceed £2,500, you must file a Self Assessment tax return. Self-employed individuals include home-working costs as an allowable expense on their Self Assessment return. HMRC either adjusts your tax code so you pay less tax during the year, or issues a rebate cheque for previous years already filed.