Working From Home Tax Relief UK 2026/27

The shift to remote and hybrid working has transformed how millions of UK employees work, with many people now splitting their time between home and the office or working remotely full-time. What many workers may not realise is that if you have been required to work from home during the 2025/26 tax year, you may be entitled to tax relief on your household expenses, potentially worth up to £125 for basic-rate taxpayers or £250 for higher-rate taxpayers.

Key Takeaways:

• Eligibility: You may qualify if your employer required you to work from home for business reasons during 2025/26. Voluntary home working does not qualify.
• Claim amount: £6 per week flat rate (£312 per year), with tax relief of £62.40 (basic rate), £124.80 (higher rate), or £140.40 (additional rate).
• How to claim: Use HMRC's online service or form P87 for PAYE employees, or claim through Self Assessment. Evidence is now required.
• Backdated claims: You can claim for up to four previous tax years (2021/22 to 2024/25).
• Important change: From 6 April 2026, employees can no longer claim tax relief directly from HMRC for homeworking expenses. Only employer reimbursements will be tax-free.

This guide explains everything you need to know about working from home tax relief, including eligibility criteria, the simplified £6 per week flat rate allowance versus claiming actual expenses, the step-by-step process for claiming, HMRC's evidence requirements, and common mistakes that could jeopardise your claim. For a full view of your tax position, see our Income Tax Calculator.

What Is Working From Home Tax Relief?

Working from home tax relief is a tax allowance that allows employees to claim tax relief on additional household costs incurred as a direct result of being required to work from home by their employer. The relief recognises that when you work from home regularly, you incur increased expenses such as heating, electricity, internet usage, and general wear and tear on your home that you would not face if you worked entirely from your employer's premises.

The relief applies specifically to employees who are required to work from home, not those who choose to do so for personal convenience. This distinction is critical and forms the basis of HMRC's recent warnings about questionable claims. If your employer provides an office and you prefer to work from home occasionally for your own reasons, you are not entitled to the relief. The requirement to work from home must come from your employer based on business needs, not personal preference.

The relief can be claimed in two ways: through the simplified flat rate allowance of £6 per week, or by claiming tax relief on your actual additional household expenses if these exceed the flat rate. The vast majority of employees claim the flat rate because it is simpler and does not require evidence of actual costs.

For the 2025/26 tax year, basic-rate taxpayers paying 20% income tax receive £62.40 in tax relief (£6 × 52 weeks × 20%). Higher-rate taxpayers at 40% receive £124.80, while additional-rate taxpayers at 45% receive £140.40.

The relief covers a portion of household expenses including heating, electricity, water, business telephone calls, internet access, and general maintenance costs related to your working space. It does not cover costs your employer already reimburses, capital items like furniture or equipment, or expenses that would have been incurred anyway regardless of working from home.

Important change from 6 April 2026: From the 2026/27 tax year onwards, employees will no longer be able to claim tax relief directly from HMRC for homeworking expenses. This measure, announced at Budget 2025, removes the ability for employees to claim a deduction from Income Tax for additional household costs when required to work from home. However, employers can still reimburse employees for these costs tax-free where eligible.

Who Can Claim Working From Home Tax Relief?

Understanding exactly who qualifies for working from home tax relief prevents wasted time submitting unsuccessful claims and reduces the risk of HMRC penalties for inappropriate claims. The eligibility criteria are specific and have been the subject of considerable confusion, particularly following the pandemic when millions of people suddenly began working from home.

The fundamental requirement is that you must be an employee who has been required to work from home by your employer to perform your duties. The word "required" is crucial here and is where many claims fall down under HMRC scrutiny. If your employer provides office facilities and allows you to work from home occasionally as a flexible working arrangement or employee benefit, this does not constitute being "required" to work from home for tax relief purposes.

During the COVID-19 pandemic, the government explicitly advised people to work from home where possible, and employers were instructed to facilitate remote working. This created a clear requirement to work from home that satisfied HMRC's criteria, which is why millions of employees successfully claimed relief during 2020, 2021, and 2022. However, as pandemic restrictions ended and offices reopened, the situation became less clear-cut. Many employers now operate hybrid working models where employees split time between home and office, and this is where HMRC's recent concerns about questionable claims have emerged.

For hybrid workers, you may only claim working from home tax relief for the period during which you are genuinely required to work from home, not for days when you choose to do so. If your employer requires you to work from home one day per week but allows you to work from home additional days at your discretion, you may only claim relief for the required day. HMRC expects employers to confirm in writing which days or arrangements are mandatory versus optional.

You cannot claim working from home tax relief if your employer already reimburses you for your home working costs. If your company pays you an allowance specifically to cover household expenses incurred through working from home, this reimbursement already provides the financial benefit, and you cannot claim additional tax relief on the same costs. However, if your employer's reimbursement is less than the £6 per week flat rate, you may be able to claim tax relief on the difference.

Part-time workers and those on zero-hours contracts may be able to claim working from home tax relief provided they meet the requirement test. The relief is available regardless of how many hours you work, as long as you are genuinely required to work from home for business reasons. If you work from home one day per week throughout the year on a regular pattern required by your employer, you may be entitled to claim the relief in the same way as someone working from home full-time.

Employees who work from home for only part of the tax year can claim proportional relief. If you were required to work from home for six months of the year and worked from the office for the other six months, you claim half the annual flat rate allowance. The P87 claim form allows you to specify the number of weeks or months you worked from home.

HMRC has issued warnings about a surge in questionable work-from-home tax relief claims, noting that many applications appeared to come from people who were not genuinely required to work from home or who were claiming for periods when they actually worked in an office. According to HMRC, after checking claims, over half have been deemed ineligible for the relief, indicating high levels of non-compliance.

How Much Working From Home Tax Relief Can You Claim?

The amount of working from home tax relief you can claim depends on whether you use the simplified flat rate allowance or claim actual expenses, and your marginal income tax rate determines the value of the relief received.

The standard approach for most employees is claiming the flat rate allowance of £6 per week. This allowance has been set by HMRC as a reasonable estimate of the additional household costs incurred by working from home one or more days per week. The vast majority of claimants use this easement, which does not require receipts to be provided.

For a full tax year of working from home, the £6 weekly allowance amounts to £312 annually (52 weeks × £6). The actual tax relief you receive is this amount multiplied by your marginal tax rate. A basic-rate taxpayer paying 20% income tax receives £62.40 in annual tax relief (£312 × 20%). A higher-rate taxpayer at 40% receives £124.80 (£312 × 40%), while an additional-rate taxpayer at 45% receives £140.40 (£312 × 45%).

The flat rate is particularly beneficial for people who work from home only occasionally. If you are required to work from home just one day per week throughout the year, you still claim the full £6 weekly allowance, receiving the same relief as someone working from home five days per week.

If you work from home for only part of the tax year, you claim proportional relief based on the number of weeks worked from home. Someone required to work from home for 26 weeks of the year would claim 26 × £6 = £156 in allowable expenses, receiving tax relief of £31.20 at the basic rate or £62.40 at the higher rate.

Alternatively, you can claim tax relief on your actual additional household expenses if these exceed the flat rate, but this approach requires significantly more work and evidence. You must calculate the extra costs you have incurred specifically because of working from home, which means identifying what you spend on heating, electricity, water, internet, and phone calls beyond what you would have spent if you had worked entirely from your employer's office.

Calculating actual expenses is complex because you cannot claim for costs you would have incurred anyway. For example, if you heat your home during the day even when not working, you cannot claim heating costs. If your internet package costs the same regardless of usage, you cannot claim the subscription fee. You can only claim the marginal increase in costs directly attributable to working from home.

HMRC requires detailed evidence for actual expense claims, including utility bills, internet and phone bills, and calculations showing exactly how you have apportioned costs between business and personal use. Given the administrative burden and evidential requirements, most employees find that the simplified £6 flat rate is more beneficial and certainly far easier to claim and substantiate.

One important limitation is that you cannot claim for capital items or equipment. If you buy a desk, chair, computer, or other furniture or equipment for your home office, these are capital expenses that do not qualify for employee tax relief.

For multiple years of backdated claims, the relief accumulates. Claims can be made for up to four years retrospectively, so in 2026/27 you can still claim back to 2021/22.

How to Claim Working From Home Tax Relief

The process for claiming working from home tax relief depends on whether you complete Self Assessment tax returns or pay tax entirely through PAYE. For most employees paid through PAYE, the claim is made using HMRC's online service or the P87 form, while Self Assessment taxpayers claim through their annual tax return.

Claiming Through HMRC's Online Service

PAYE employees can claim through HMRC's dedicated online service. You need a Government Gateway user ID and password. Once logged in, navigate to the "Claim tax relief for your job expenses" service and select the working from home option.

The online form asks you to confirm that you were required to work from home by your employer and to specify the tax year or years for which you are claiming. You can claim for the current tax year and up to four previous tax years in a single application. For each year, you indicate the number of weeks you worked from home, and the system automatically calculates your relief based on the £6 weekly flat rate and your income tax rate.

Claiming Using Form P87

If you prefer not to use the online service or cannot access it for any reason, you can submit a paper claim using form P87. From 14 October 2024, HMRC changed the process for employment expense claims, requiring evidence to be submitted with postal claims.

Form P87 requires detailed information including your employer's name and PAYE reference, the tax year or years for which you are claiming, and details of the expenses you are claiming. For working from home relief, you need to send evidence that you must work from home, such as a copy of your employment contract. If it is not stated in your contract, you need to send something else that proves you must work from home.

Claiming Through Self Assessment

If you complete Self Assessment tax returns, you claim working from home tax relief directly on your tax return. On the employment pages of your tax return, there is a section for employment expenses where you enter your working from home costs. You include the annual flat rate (£312 for a full year or proportional amount for part-year) as an allowable employment expense.

Backdated Claims for Previous Years

Working from home tax relief can be claimed retrospectively for up to four tax years. As of 2026/27, you can claim back to 2021/22. However, from the 2026/27 tax year onwards, you will not be able to claim tax relief for working from home. You can still claim for the 4 previous tax years.

What Happens After You Claim

Once HMRC receives your claim, they review the information against their records. Processing times vary depending on the method of claim and HMRC's workload. If HMRC approves your claim for the current year, they usually adjust your tax code to reduce future tax deductions. For backdated claims, HMRC issues refunds directly to your bank account or by cheque.

If HMRC has questions about your claim or requires additional information, they will contact you in writing. Respond promptly with any requested evidence or clarification to avoid delays.

HMRC's Evidence Requirements and Compliance

From 14 October 2024, HMRC changed the process for employees claiming job-related expenses which are not reimbursed by the employer. HMRC now requires evidence to be submitted along with the claim, adopting a 'check first, pay later' approach.

For working from home claims, you need to send evidence that you must work from home, such as a copy of your employment contract. If it is not stated in your contract, you need to send something else that proves you must work from home. If you choose to work from home, you cannot claim for this expense.

HMRC has issued warnings about a surge in questionable work-from-home tax relief claims. According to HMRC, after checking claims, over half have been deemed ineligible for the relief, indicating high levels of non-compliance.

The penalties for incorrect claims can be substantial. If HMRC determines that you have made a careless error, penalties may apply. In addition to penalties, you will have to repay any relief incorrectly received.

HMRC has also warned about third-party companies and websites offering to submit working from home tax relief claims on your behalf in exchange for a fee or percentage of any refund. Using such services does not absolve you of responsibility for the accuracy of claims submitted in your name.

To ensure your claim withstands scrutiny, keep evidence that you were required to work from home. This might include emails or letters from your employer confirming home working arrangements, company policies documenting work-from-home requirements, or written confirmation of hybrid working patterns specifying which days are mandatory.

Changes from 6 April 2026

A significant change takes effect from 6 April 2026. Employees will no longer be able to claim tax relief directly from HMRC for additional household costs incurred when required to work from home.

This measure, announced at Budget 2025, removes the process in which employees can claim a deduction from Income Tax from HMRC if they have incurred additional household costs when being required to work from home. These costs include increased household utility costs and business telephone calls.

The change does not affect the existing ability for employers to reimburse employees for costs relating to homeworking without deducting Income Tax and National Insurance contributions. Employers can continue to pay employees a tax and NI-free allowance for additional household costs where there is an agreement between the employer and the employee confirming they can work from home.

For 2025/26, an employee who incurs additional household expenses as a result of working from home can be compensated in two ways: the costs are reimbursed by the employer, or the employee makes a claim for tax relief. From 2026/27 onwards, only the first option will be available.

HMRC says that this measure aims to address concerns around non-compliance and to ensure fairness across the tax system, as after checking claims, over half have been deemed to be ineligible for the relief.

For self-employed individuals, the changes do not impact deductions for expenses incurred. Self-employed individuals can continue to claim a flat rate based on hours worked from home or a proportion of household bills.

Common Mistakes to Avoid When Claiming

Many working from home tax relief claims are unsuccessful or result in HMRC challenges because of common mistakes that are easily avoidable with proper understanding of the rules.

The most frequent mistake is claiming when you were not actually required to work from home by your employer. Simply working from home regularly does not create entitlement to relief; the requirement must come from your employer based on business needs, not your personal preference.

Another common error is claiming for the entire year when you only worked from home for part of it. Always claim only for the specific period you were genuinely required to work from home.

Claiming when your employer already reimburses your home working costs disqualifies many applications. If your company pays you an allowance specifically to cover household expenses from working from home, you cannot claim tax relief on the same costs.

Some people mistakenly believe they can claim for equipment and furniture purchased for their home office. Desks, chairs, computers, and other capital items do not qualify for employee tax relief under the working from home rules.

Failing to keep evidence to support your claim is risky even if the claim is legitimate. Keep emails from your employer confirming home working requirements, company policies, and any other documentation that proves you were required to work from home.

Exaggerating the number of days or weeks worked from home is a serious mistake that can result in penalties. Always claim accurately based on the actual pattern of home working required by your employer.

Not updating your claim when circumstances change can create problems. If you claimed relief for the full year but then returned to office working partway through, you should notify HMRC of the change to avoid receiving more relief than you are entitled to.

Final Thoughts

Working from home tax relief provides valuable tax savings for employees who were required to work from home by their employer during the 2025/26 tax year, with the simplified £6 weekly flat rate offering £62.40 to £140.40 in annual tax relief depending on your income tax rate. The relief can be claimed retrospectively for up to four previous tax years, potentially providing refunds for people who worked from home during the pandemic but never claimed.

Eligibility depends on being genuinely required to work from home for business reasons, not simply choosing to do so for personal convenience. HMRC has warned of a surge in questionable claims and now requires evidence to be submitted with claims, particularly evidence that you must work from home such as a copy of your employment contract.

The claim process is straightforward using HMRC's online service or form P87 for PAYE employees, or through Self Assessment for those completing tax returns. Accuracy and honesty when claiming ensures you receive the relief you are entitled to without triggering HMRC scrutiny.

Important: From 6 April 2026, employees can no longer claim tax relief directly from HMRC for homeworking expenses. Only employer reimbursements will be tax-free. If you have not yet claimed for 2025/26 or earlier years, you should do so before the change takes full effect.

For a full view of your tax position, see our Income Tax Calculator and PAYE payslip guide. For help understanding your tax code, try our Tax Code Checker.

Official Sources and Further Reading

GOV.UK Official Guidance:

• Working from home: tax relief for employees - Main GOV.UK page for claiming relief
• Claim tax relief for your job expenses by post - P87 guidance and evidence requirements
• Employment Income Manual EIM32760 - HMRC guidance on homeworking expenses
• Removal of tax relief on non-reimbursed homeworking expenses - Budget 2025 policy paper

HMRC Forms:

• Form P87: Tax relief for expenses of employment - Download the paper claim form

Professional Body Guidance:

• ICAEW: Prepare for 2026/27 – Employees - Detailed analysis of changes
• ATT: Changes to claiming tax relief for employment expenses - Evidence requirements

This guide provides general information about UK working from home tax relief. Tax relief eligibility depends on individual circumstances and employer requirements. For personalised advice about your specific situation, consult a qualified tax adviser or contact HMRC directly. Always check GOV.UK for current rates and guidance.