How do I claim working-from-home tax relief for 2026/27?

Full answer

Working from home tax relief compensates employees for the additional household costs — electricity, heating, broadband — incurred when working at home. There are two methods: **flat rate** and **actual costs**. **Method 1 — Flat rate (simplest):** - **£6 per week** (£312/year) — no receipts or evidence required - Basic-rate taxpayer saves: £312 × 20% = **£62.40/year** - Higher-rate taxpayer saves: £312 × 40% = **£124.80/year** - Additional-rate taxpayer saves: £312 × 45% = **£140.40/year** **Method 2 — Actual cost method:** If your actual additional costs exceed £6/week, you can claim the exact amount — but must have evidence (metered readings, bills). Costs that qualify include: electricity for heating/lighting the work area, broadband (proportional business use), water if metered and used for work purposes. Mortgage interest and council tax do **not** qualify. **Who qualifies:** You must be **required to work from home** by your employer (not simply choosing to). Voluntary hybrid working — where you could go to the office but prefer not to — does **not** qualify for the relief. **How to claim:** - Online via **HMRC PAYE tax claim service** at gov.uk (takes 5 minutes, instant tax code adjustment) - Via **P87 form** (postal or via HMRC online account) - Through **Self Assessment** if you already file a return **4-year backdating:** You can claim for the previous **4 tax years** — potentially reclaiming £249.60 at basic rate. **Self-employed simplified rates:** | Monthly hours at home | Deduction per month | |---|---| | 25–50 hours | £10 | | 51–100 hours | £18 | | Over 100 hours | £26 |

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Related guides

• Uk Working From Home Tax Relief