Who can claim as an employee
The key condition for employees is that you must be required to work from home, rather than simply choosing to. If your employer has no office for you to attend, or your role genuinely cannot be done anywhere else, you are likely to qualify. If you work from home now and then for convenience, or because you prefer it, you generally cannot claim, even if your employer is happy for you to do so.
This requirement test is the part that catches people out. Since hybrid working became common, many employees assume that any home working triggers relief, but that is not the case. The relief is aimed at people who have to work from home as part of how their job operates, not those choosing to split their week.
How much you can claim
There are two ways to claim. The simplest is the flat rate, where you can claim tax relief on a fixed amount of £6 a week without needing to keep any receipts or work out exact costs. This is the easy option for most people because there is no record keeping involved beyond confirming you qualify.
Alternatively, you can claim the actual extra costs you incur because you work from home, such as the additional gas, electricity and metered water used for work. If you choose this route, you need evidence to support the figures, and you can only claim the extra cost caused by working, not a share of costs you would have paid anyway. For most employees the flat rate is simpler and the difference is small, but if your additional costs are high the actual method may be worth the extra effort.
A worked example
An employee claiming for a full year
Aisha is required to work from home full time because her employer has no local office. She chooses the flat rate of £6 a week. Over a 52 week year that is £312 of allowable amount. Importantly, this is the amount you claim relief on, not the cash you receive. As a basic rate taxpayer paying 20 percent, Aisha gets tax relief of 20 percent of £312, which is around £62 for the year. A higher rate taxpayer paying 40 percent on the same £312 would receive around £125. The benefit is a reduction in the tax you pay, not a payment of the full £6 a week.
This is a common point of confusion. The £6 a week is the figure your relief is calculated on, so the actual saving depends on your tax rate.
How it differs from the self employed
The rules for the self employed are different and generally more generous in scope. A self employed person does not need to be required by anyone to work from home, because they are running their own business. They claim a business proportion of home costs as part of their accounts, either using a simplified flat rate based on hours worked at home, or by working out an actual proportion of household costs.
For the self employed, this is part of claiming business expenses, which is a much broader area. If you are self employed, it is worth understanding the wider rules on what you can deduct. Our guides on allowable expenses and Self Assessment allowable expenses set out how this works and what records to keep.
Other reliefs worth checking
Working from home relief is not the only thing employees can claim. If you wear a uniform or branded workwear that you wash yourself, or you buy your own tools for the job, you may be able to claim flat rate expenses for certain occupations. You may also be able to claim relief on fees and subscriptions to professional bodies that appear on HMRC's approved list, where membership is relevant to your job.
How you claim depends on your circumstances. Some employees can claim without filing a tax return, while others, particularly those who already complete a return, claim through Self Assessment. If you would like us to check what you are entitled to and put the claim through correctly, you can start your quote.
A guide to working from home tax relief for employees, the flat rate claim, who qualifies and how it differs from the self employed.
Frequently asked questions
Do I have to be forced to work from home to claim?
For employees, yes. You must be required to work from home, for example because your employer has no office for you or your role cannot be done elsewhere. Choosing to work from home for convenience does not qualify.
How much is the flat rate?
The flat rate is £6 a week, claimed without receipts. Remember this is the amount your relief is based on, so your actual saving is the relevant tax rate applied to it, such as 20 percent for a basic rate taxpayer.
Can I claim my actual costs instead?
Yes. You can claim the actual extra costs of working from home, such as additional gas and electricity, but you need evidence and can only claim the extra cost caused by working, not costs you would have paid anyway.
Is this the same as the self employed home office claim?
No. The self employed claim a business proportion of home costs through their accounts and do not need to be required to work from home. The employee rules are stricter and use the requirement test.
Can I claim for previous years?
You may be able to claim for earlier years if you qualified at the time, subject to time limits. It is worth checking your past circumstances, as backdated claims can add up.
What else can employees claim?
Depending on your job you may be able to claim flat rate expenses for uniforms or tools, and relief on professional subscriptions on HMRC's approved list where they relate to your work.