Skip to content 
With remote and hybrid working now widespread, many employees are asking whether they can claim tax relief for the additional costs of working from home. While the possibility exists, it’s essential to understand that eligibility depends on specific HMRC conditions. Simply choosing to work from home doesn’t automatically qualify you for relief.
When Tax Relief is Allowed
HMRC permits tax relief on homeworking expenses only if the employee is contractually or operationally required to work from home. This means your job duties must demand it, not just your personal preference. To qualify, the following conditions must be met:
- The work done from home must be central to your employment duties.
- The duties require facilities that are not available at your employer’s premises.
- You must not have a choice about where you work—either due to the nature of the job or because the employer’s premises are too far for a reasonable commute.
- Your employment contract or working arrangement should confirm the homeworking requirement from the outset.
If you’re working from home purely by personal choice, such as under a flexible working policy, then you are not eligible to claim tax relief for homeworking expenses.
Claiming the Tax Relief
If you meet HMRC’s criteria, there are two methods for claiming the tax relief.
First, you can use the flat-rate method. This lets you claim £6 per week, or £312 a year, without needing receipts or calculations. It’s an easy choice for most employees.
Second, you can claim the actual extra costs you have due to working from home. These might include higher electricity, gas, and water bills. This method requires you to provide evidence, such as utility bills, and you may need to show your usage before and after you started working from home. You cannot claim rent, council tax, or mortgage interest unless these costs increase solely because of your work duties.
Making a Claim
You can submit your claim online through HMRC’s website if your total annual employment expenses are less than £2,500. If you complete a Self Assessment tax return, the claim should be included in that. Alternatively, you can use form P87 and post it to HMRC.
If you want to make a claim based on actual costs, be prepared to provide detailed documents. This includes your employment contract and any relevant bills. You need this documentation to show that working from home is necessary for you, not just a personal choice.
Other Considerations
If your employer reimburses your homeworking expenses, you can’t claim tax relief for those same costs. Employees can backdate claims for up to four tax years if they met eligibility conditions. For minimal or hard-to-quantify costs, the £6-per-week method is practical, but claiming actual expenses may provide more relief if you have proof of higher costs.
You can get tax relief for working from home, but it’s not automatic. You must prove that homeworking is necessary for your job. Most eligible employees can use the simple fixed-rate allowance. However, if you have significant extra costs that can be proven, claiming actual expenses may be more beneficial. Keep your records organised to prevent issues with HMRC.