Work From Home Tax Relief UK 2026/27: How to Claim and How Much You Get

What Is Work From Home Tax Relief?

If you are required to work from home by your employer -- even for just one day per week -- HMRC allows you to claim tax relief on the extra household costs you incur. This includes things like increased heating, electricity and broadband usage.

The relief is available under Section 316A of the Income Tax (Earnings and Pensions) Act 2003 and has been available for many years, though awareness surged during the pandemic when millions of people started working from home.

In 2026/27, the flat-rate relief remains at £6 per week (£312 per year). This is not money you get back directly -- it is the amount you can claim as a tax deduction, so the actual cash saving depends on your tax rate.

---

How Much Can You Actually Save?

The £6/week flat rate means HMRC allows you to deduct £312 from your taxable income per year. Your actual saving depends on your income tax rate:

While these amounts are modest, the claim is straightforward and takes only a few minutes to submit for each tax year.

---

Who Can Claim Work From Home Tax Relief?

You can claim this relief if:

• You are employed (PAYE) or self-employed
• Your employer requires you to work from home -- not just allows or prefers it
• You bear the additional costs yourself (not reimbursed by employer)

The "Required to Work from Home" Test

HMRC distinguishes between:

• Required -- your employer insists you work from home because there is no suitable office, your role demands it, or you live too far from the office. This qualifies.
• Voluntary/hybrid choice -- you choose to work from home some days but could go to the office. This does not qualify for the employee relief.

If you have any doubt, check whether your employer has a written policy or contract clause requiring home working.

What About Hybrid Workers?

Many employers moved to hybrid arrangements post-pandemic. If your employment contract specifies home working as your primary place of work, or if there is no office available to you, you likely still qualify. If you are simply choosing to work from home on Mondays and Fridays while the office is available every day, HMRC's position is that you do not qualify for the flat-rate relief.

---

How to Claim: Employees (PAYE)

Method 1: Via HMRC's Online Service

The quickest route is through HMRC's online "Check if you can claim working from home expenses" tool at gov.uk. This takes about 5 minutes and HMRC adjusts your tax code to give you the relief going forward.

Method 2: P87 Form

If you cannot use the online tool, submit form P87 ("Tax relief for expenses of employment") -- either online via your Personal Tax Account or by post.

You can claim for:

• The current tax year (2026/27)
• Up to four previous tax years (so back to 2022/23 if you have not claimed)

Claiming backdated years means you receive a tax rebate rather than a code adjustment.

Method 3: Self Assessment

If you already complete a Self Assessment tax return, include the WFH expenses in the employment expenses section. This is the most straightforward route for anyone who files a return anyway.

---

How to Claim: Self-Employed

If you are self-employed (sole trader or partner in a partnership), the rules are different but potentially more generous.

Simplified Expenses (Flat Rate)

HMRC's simplified expenses scheme allows self-employed people to claim a flat monthly rate based on hours worked from home per month:

At 101+ hours per month (roughly 5 hours per working day), you can claim £312 per year -- the same as the employed flat rate.

Actual Costs Method (Self-Employed)

Self-employed workers can also claim a proportion of actual household costs:

• Rent or mortgage interest (not capital repayment)
• Council tax
• Heating and electricity
• Broadband and phone

You apportion these costs by the number of rooms used for work, the hours used for work, and whether use is exclusive or shared. You must keep records (bills, calculations showing the apportionment).

The actual costs method can yield a much larger deduction than the flat rate, but it requires careful record-keeping and honest apportionment.

---

What Counts as an Additional Household Cost?

HMRC specifies that qualifying costs are those that increase as a direct result of working from home. Broadly, these include:

• Heating and electricity -- the extra power used running a computer, monitors and heating a room during working hours
• Water -- only if you use measurably more (rarely significant)
• Home telephone or internet -- only the business proportion of bills that rise because of work use

These costs do not qualify:

• Rent or mortgage payments (these are fixed costs that do not increase because you work from home)
• Broadband you would have paid for anyway (though an upgrade triggered by work requirements may qualify)
• Equipment you personally own and use for work (claimed separately as capital allowances)

---

Equipment and Furniture: A Separate Claim

Working from home expenses are separate from claiming relief on equipment. If your employer provides equipment (a laptop, desk, chair) for you to use at home, there is generally no BIK charge provided it is used mainly for work.

If you buy equipment yourself and your employer does not reimburse you, you can claim tax relief on the business-use proportion via your P87 or Self Assessment return.

---

Employer Reimbursement vs Self-Claiming

Some employers choose to pay their employees a tax-free WFH allowance directly -- up to £6/week (£26/month) -- without any PAYE or NI liability. If your employer does this, you cannot also claim the relief yourself for the same period (you cannot double-count).

If your employer pays you more than £6/week without a proper dispensation, the excess becomes taxable as income.

---

Practical Steps to Claim for 2026/27

1. Check your employment contract -- confirm home working is required, not just permitted.
2. Log into your Personal Tax Account at gov.uk.
3. Use the online WFH expenses checker -- if eligible, HMRC adjusts your tax code.
4. If you have not claimed for prior years (back to 2022/23), submit a P87 for each year to get rebates.
5. If self-employed, decide between simplified expenses and actual costs, then include in your Self Assessment return.

---

Summary

The work from home tax relief flat rate of £6/week (£312/year) is simple to claim and available to most people required to work from home. The actual cash saving ranges from £62 to £140 per year depending on your tax rate. Self-employed workers may be able to claim more through the actual costs method.

Do not overlook backdated claims -- you can go back four tax years, which could add up to £500 or more for a higher-rate taxpayer who has never claimed.