HMRC Working from Home Allowance | Eligibility, Rules & Benefits

Working from home has become the norm for many employees and self-employed professionals across the UK.

With this shift, understanding tax relief options such as the HMRC working from home allowance is crucial. This guide covers eligibility, how to claim, allowable expenses, and key changes to the scheme in 2025.

What is the Working From Home Tax Relief?

As more employees and self-employed professionals adopt remote working, the costs associated with maintaining a home office have increased. Work-from-home tax relief allows eligible workers to claim a portion of these expenses to reduce their overall tax burden.

Common work-from-home expenses that may increase

• Higher electricity and heating costs due to longer hours spent at home
• Increased internet usage for video calls, emails, and other work-related tasks
• The need for additional furniture or ergonomic office equipment
• Costs related to maintaining a dedicated workspace

Whether you are an employee required to work remotely, a freelancer, or a small business owner, these expenses can qualify for tax relief if they are solely for work purposes.

What is the Working From Home Allowance?

The work-from-home allowance is a financial contribution provided by some employers to offset additional costs incurred while working remotely. Employees receiving this allowance may still be eligible to claim tax relief from HMRC if the employer does not fully reimburse them.

Key points about the work-from-home allowance:

• It helps cover utility costs like electricity, heating, and internet.
• Employers may provide a flat-rate allowance or reimburse actual costs.
• If an employer fully reimburses work-from-home expenses, employees cannot claim additional tax relief.

Who Can and Cannot Claim Tax Relief?

Work-from-home tax relief is not available to everyone. HMRC has set specific eligibility rules to ensure that only those who genuinely incur additional costs due to remote work can benefit. The key factor in determining eligibility is whether working from home is a requirement of the job rather than a personal choice.

Who Can Claim Work-from-Home Tax Relief?

You may be eligible to claim tax relief if:

• Your employer requires you to work from home – If your job contract or employer’s policy states that your role must be performed remotely, you can claim tax relief.
• Your job has no fixed office location – If your employer does not provide a permanent workspace for you, and you are required to work from home full-time, you may be eligible.
• Commuting to an office is not feasible due to job requirements – If your job involves covering a large geographical area (e.g., field-based roles) and home working is the only practical option, you can claim tax relief.
• You incur additional household costs because of remote work – To qualify, you must demonstrate that your work-from-home setup leads to extra expenses, such as increased heating, electricity, or broadband usage.
• You work remotely due to employer-imposed health and safety measures – In some cases, an employer may require employees to work remotely for health, safety, or operational reasons. If this is mandated and not optional, tax relief may be available.

Who Cannot Claim Work-from-Home Tax Relief?

Not everyone who works from home qualifies for tax relief. HMRC does not allow claims if working from home is a matter of convenience rather than a necessity. You cannot claim tax relief if:

• You choose to work from home voluntarily – If you have the option to work remotely but are not required to do so, you are not eligible.
• Your employer provides an office space, but you prefer working from home – If you have access to a workplace but decide to work remotely for personal reasons, you cannot claim tax relief.
• You occasionally work from home but are mainly office-based – If you only work from home part-time and do not have a contractual requirement to do so, you do not qualify.
• Your employer’s office is temporarily full or unavailable – If your employer has an office but lacks space for all employees at a given time, you cannot claim tax relief simply because you are working remotely until space becomes available.
• You work remotely under a hybrid working arrangement based on preference – If your employer offers hybrid working and you choose to work remotely for some days of the week without a formal requirement, tax relief is not applicable.
• You are self-employed or a contractor – Self-employed individuals and contractors do not qualify for the standard work-from-home tax relief. Instead, they must claim allowable business expenses through self-assessment.

What If You Work Under a Hybrid Model?

Hybrid workers may qualify for tax relief under specific conditions. If your employer requires you to work from home for part of the week as a contractual obligation, you may be able to claim tax relief for the days you work remotely. However, if hybrid working is an optional arrangement, HMRC will not consider you eligible.

For example:

• Eligible hybrid worker – If your employment contract states that you must work from home for three days a week due to company policy, you may be able to claim relief for those specific days.
• Ineligible hybrid worker – If you have the freedom to choose which days to work remotely, but your employer does not require it, you are not eligible for tax relief.

Who is Now Eligible for Working From Home Tax Relief?

Eligibility for work-from-home tax relief has changed over time. Initially, during the pandemic, any remote worker could claim tax relief, but now stricter rules apply.

Eligible workers include:

• Employees whose contracts require them to work from home permanently.
• Workers with no access to a physical office space.
• Those living in locations where daily commuting to a company office is impractical.

What Home Office Expenses Can I Claim for Working From Home?

Work-from-home expenses must be wholly and exclusively for business purposes to qualify for tax relief. Personal or mixed-use expenses typically do not qualify.

Allowable expenses include:

• Utility bills: Additional costs for heating, electricity, and metered water use.
• Internet expenses: If you installed broadband specifically for work, or if your usage significantly increased due to work.
• Cleaning costs: If they are directly related to your home office.
• Work-related calls: Telephone costs incurred exclusively for business purposes.
• Office supplies: Stationery, printer ink, and essential work-related materials.
• Home office furniture and equipment: Must be employer-provided or justified as an essential work expense.

Expenses that are not claimable:

• Rent or mortgage payments (these are considered personal expenses).
• General home maintenance or renovation costs.
• Food and drink while working from home.
• Any utility costs that are not specifically related to work usage.

How Do You Claim Tax Relief for Working from Home?

If you meet HMRC’s eligibility criteria for work-from-home tax relief, you can submit a claim either through self-assessment, HMRC’s online service, or a postal application. The process depends on whether you are claiming the standard £6 per week flat-rate relief or the actual additional expenses incurred.

Step 1: Determine Your Eligibility

Before submitting a claim, ensure that you meet HMRC’s criteria. You can claim if:

• Your employer requires you to work from home.
• You have additional household expenses due to remote work.
• You are not fully reimbursed by your employer for these expenses.

If you are unsure about your eligibility, you can check using the HMRC online eligibility tool on Gov.uk.

Step 2: Choose Your Claim Method

HMRC allows employees to claim tax relief in two ways:

1. Flat-Rate Allowance (£6 per week)

• The easiest method, requiring no proof of expenses.
• Available to all eligible employees.
• Provides automatic tax relief based on your income tax band.

For example, if you are a basic rate taxpayer (20%), you will receive £1.20 per week in tax relief.

2. Actual Additional Expenses

• Requires receipts, invoices, or bills as proof.
• Must be for expenses that are wholly and exclusively for work purposes.
• Includes electricity, heating, metered water, internet costs, and business calls.

If your actual work-from-home expenses exceed £6 per week, this method may provide greater tax savings.

Step 3: Submit Your Claim Through HMRC

The method you use to submit your claim depends on how you typically handle your taxes.

If You Are Employed and Do Not File a Self-Assessment Tax Return:

• Use HMRC’s online service at Gov.uk.
• Log in using your Government Gateway account.
• Provide details about your employment and work-from-home situation.
• HMRC will adjust your tax code, reducing the amount of tax deducted from your salary.

If You Complete a Self-Assessment Tax Return:

• Include your claim under the Employment Expenses (P87 form) section when filing your return.
• If claiming actual costs, enter the total amount spent and attach supporting documents.

If You Are Claiming for Previous Years:

• Submit a claim via HMRC’s online service or by filling out Form P87.
• You can backdate claims for up to four previous tax years.
• If approved, HMRC may adjust your tax code or issue a tax refund for the amount you overpaid.

Step 4: Track Your Claim and Receive Your Tax Relief

Once submitted, HMRC typically processes work-from-home tax relief claims within a few weeks.

• If your claim is for the current tax year, HMRC will adjust your tax code, reducing the tax deducted from your salary.
• If you are claiming for previous tax years, HMRC may issue a refund in the form of a bank transfer or cheque.

To track your claim:

• Log into your Personal Tax Account on Gov.uk and check your tax relief status.
• Contact HMRC if you do not receive an update within eight weeks.

Common Mistakes to Avoid When Claiming

To ensure a smooth claim process, avoid these common errors:

• Claiming when not eligible – If your employer allows you to choose remote work but does not require it, your claim may be rejected.
• Submitting incorrect information – Ensure all personal and employment details match HMRC records.
• Failing to keep receipts – If claiming actual expenses, retain proof of additional costs.
• Expecting immediate refunds – HMRC processes tax relief claims within a few weeks, but some cases may take longer.

Following these steps will help you successfully claim your work-from-home tax relief and reduce your overall tax liability.

How Much Working From Home Tax Relief Will I Get?

The amount of tax relief depends on whether you claim the flat-rate allowance or actual expenses.

Standard allowance for 2024–25:

• £6 per week
• £26 per month
• Up to £125 annually

Tax relief based on income tax bracket:

If claiming actual expenses, the tax relief will vary based on the total additional costs incurred for work purposes.

Can I Claim Work From Home Tax Relief for Previous Years?

Yes, HMRC allows claims for the current and up to four previous tax years. Employees who worked from home due to the pandemic can claim for past years, provided they meet the eligibility criteria.

How to backdate your claim:

• Submit a claim via the HMRC online service or self-assessment tax return.
• Provide documentation of past expenses, such as old bills or employer correspondence confirming remote work requirements.
• Claims dating back to April 2020 may still be valid under previous guidelines.

Why Did Hmrc Change the Tax Relief Eligibility for Working From Home?

During the pandemic, HMRC allowed all remote workers to claim tax relief due to government restrictions. However, as these restrictions were lifted, HMRC revised the eligibility rules.

Key changes:

• Pre-pandemic: Tax relief was limited to employees with a mandatory remote working arrangement.
• Pandemic period (2020–2022): All remote workers could claim tax relief, regardless of their employer’s work-from-home policy.
• Post-pandemic (2023–2024): The rules were tightened, allowing tax relief only for employees required to work from home due to their job’s nature.

These changes aim to ensure that tax relief is provided only to workers who genuinely incur extra costs due to remote work.

What Are the Tax Implications of Hybrid Working?

Hybrid working arrangements have created confusion regarding tax relief eligibility. Employees who split their time between home and the office may still qualify for some relief if their employer mandates remote work for part of the week.

Hybrid work and tax relief:

• If working from home is required by the employer, employees can claim tax relief.
• If employees choose to work remotely part-time, they are not eligible for tax relief.
• The maximum claim remains £6 per week, regardless of how many days are spent working remotely.

For hybrid workers, tax relief claims should be based only on the portion of expenses directly related to home working.

Conclusion

The HMRC working from home allowance is a valuable tax relief for those who genuinely incur extra costs while working remotely. However, eligibility rules have changed, making it essential to understand whether you qualify before making a claim. If you are eligible, ensure you submit your claim correctly to maximise your tax savings.

FAQs About 

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

No, HMRC only allows claims if working from home is a requirement of your job, not a personal choice.

How long does it take for HMRC to process a work-from-home tax relief claim?

It typically takes a few weeks, but claims for previous years may take longer. You can check your claim status via your HMRC online account.

Do self-employed individuals get the same work-from-home allowance?

No, self-employed individuals claim business expenses through self-assessment rather than the standard £6 weekly allowance.

Can I claim for home office furniture?

Only if it is provided by your employer or is an essential business expense. Otherwise, it may be considered a taxable benefit.

What happens if my employer reimburses my home expenses?

You cannot claim additional tax relief if your employer fully covers your expenses.

Can I claim tax relief for broadband costs?

Only if you can prove that the broadband was installed specifically for work purposes or that work use significantly increased your costs.

Is work-from-home tax relief the same for part-time workers?

Yes, but only for the days you are required to work from home.