How much Working From Home tax relief can I claim in 2026/27?

Full answer

Working from home tax relief compensates employees and self-employed workers for additional household costs incurred when working from home. Employees -- flat rate method HMRC allows employed workers to claim GBP 6 per week (GBP 26 per month, GBP 312 per year) without needing to keep receipts or calculate actual costs. The employer can also pay this amount as a non-taxable allowance; if the employer does not, the employee claims relief via: -- P87 online form (for claims under GBP 2,500) -- Self Assessment tax return The relief reduces taxable income, so the actual tax saving depends on the taxpayer's marginal rate: -- Basic rate (20%): GBP 312 x 20% = GBP 62.40/year -- Higher rate (40%): GBP 312 x 40% = GBP 124.80/year Employees -- actual costs method Alternatively, employees can claim actual additional costs attributable to working from home: electricity, gas (heating), business phone calls, broadband pro-rated for business use. Costs that would be incurred anyway (base rent, broadband package) are not separately claimable. Condition: must be required by the employer to work from home (not just choosing to do so). Hybrid workers who have a workplace available but prefer to work at home do not qualify. Self-employed -- simplified expenses Self-employed individuals can use HMRC's simplified flat-rate deductions based on hours worked at home per month: -- 25 to 50 hours: GBP 10/month -- 51 to 100 hours: GBP 18/month -- 101 hours or more: GBP 26/month Self-employed -- actual costs Alternatively, apportion total household costs (rent/mortgage interest, utilities, council tax, insurance) by the proportion of rooms used for work and the proportion of time used. HMRC accepts reasonable apportionment methods.

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