Working from Home Tax Relief

If You’re Employed

You can claim tax relief if you must work from home (not just choose to). Your employer must require it, or your job must be such that you can’t reasonably do it at your employer’s premises.^[1]

Flat Rate Method

The simplest approach: claim £6 per week (£312 per year) without keeping receipts. As a basic-rate taxpayer, this saves you £62.40 a year in tax. Higher-rate taxpayers save £124.80.^[1]

Actual Costs

Alternatively, claim the actual additional costs of working from home. You’ll need evidence of the extra cost (e.g. higher heating or electricity bills). You can only claim the increase, not a proportion of your total bill.^[1]

How Employed People Claim

You can claim by:^[1]

Using the online P87 form (if claiming less than £2,500)
Through your Self Assessment return (if you already file one)

Employer payments: If your employer already pays you for working from home (up to £6/week tax-free), you can’t claim relief on top of that amount.

If You’re Self-Employed

Self-employed people who use part of their home for business can claim a proportion of household costs as an expense when they file their Income Tax return. There are two methods:^[2]

Simplified Expenses (Flat Rate)

Use HMRC’s flat rates based on hours worked at home per month:^[3]

Hours per Month	Monthly Flat Rate
25 – 50	£10
51 – 100	£18
101+	£26

Actual Costs (Proportion)

Calculate the business proportion of your household costs based on the number of rooms used and hours of business use. Costs you can apportion include:^[2]

Heating and electricity
Council Tax
Mortgage interest or rent
Internet and phone
Insurance

CGT warning: If you claim a dedicated room exclusively for business, that room could be liable to CGT when you sell your home. Using a room partly for personal use avoids this.

What You Cannot Claim

Costs you’d pay regardless of working from home (e.g. base level of heating)
Equipment your employer provides
The full cost of a broadband connection used for personal and business purposes

Frequently Asked Questions

How much can I claim for working from home as an employee?

You can claim a flat rate of £6 per week (£312 per year) without keeping receipts. This saves £62.40 per year for basic-rate taxpayers or £124.80 for higher-rate taxpayers. Alternatively, you can claim actual additional costs with evidence.

Can I claim working from home relief if I choose to work from home?

No. Employees can only claim if their employer requires them to work from home or if the job cannot reasonably be done at the employer’s premises. Choosing to work from home does not qualify.

How do self-employed people claim working from home expenses?

Self-employed people can use HMRC simplified flat rates (£10, £18, or £26 per month depending on hours worked at home) or calculate the actual business proportion of their household costs including heating, electricity, and internet.

Will claiming a home office affect Capital Gains Tax when I sell?

If you claim a dedicated room used exclusively for business, that room could be liable to CGT when you sell your home. Using the room partly for personal use avoids this issue.

Sources

Claim tax relief for your job expenses — GOV.UK
Expenses if you're self-employed — GOV.UK
Simplified expenses for the self-employed — GOV.UK
Employment Income Manual — GOV.UK