Working From Home Tax Relief: A Quick Guide for UK Employees
If you're required to work from home due to your employer’s setup or circumstances, you may be entitled to tax relief on increased household bills such as heating, electricity, and broadband. HMRC offers a straightforward system to claim this relief either at a flat rate or based on actual additional costs.
1. Eligibility Criteria
To qualify, you must be required to work from home by your employer. This means there is no suitable workplace provided, or commuting is unreasonable. If you're working from home by choice—even under a hybrid agreement—you cannot claim tax relief.
2. Flat Rate Relief
HMRC allows employees to claim a flat rate of £6 per week without submitting receipts. This gives basic rate taxpayers up to £62 per year in relief, while higher rate taxpayers can claim up to £125 annually. It’s a simple option with minimal paperwork.
3. Claiming Actual Expenses
If your work-related home expenses exceed £6 per week, you can claim the actual amount—but you'll need to keep detailed records such as bills, calculations, and proof of work use. Only the portion related to work is allowable.
4. How to Claim
You can apply via HMRC’s online portal or by submitting form P87. If you already complete a Self Assessment tax return, include the claim there. Claims can be backdated up to four tax years if eligible during those periods.
Conclusion
Tax relief for working from home can ease the financial impact of home-based work—provided it's mandatory. Choose the flat rate for simplicity or actual costs for larger claims, and always ensure you meet HMRC's criteria.
