Working From Home Tax Relief: How to Claim GBP 312/Year in 2026/27

Millions of UK workers now spend at least part of their week working from home -- and HMRC offers a tax relief that puts money back in your pocket. In 2026/27 the flat-rate allowance remains GBP 6 per week, worth up to GBP 312 per year in deductions before tax. For a higher-rate taxpayer that translates to GBP 124.80 back; for a basic-rate payer, GBP 62.40.

The rules are not complicated, but many eligible workers never claim. This guide explains exactly who qualifies, how to claim and whether it is worth considering the actual costs method instead.

Who Is Eligible for Working From Home Relief?

HMRC applies a specific eligibility test. You must:

1. Be required to work from home by your employer -- either because your role demands it or because your employer has no suitable office space for you. Voluntarily choosing to work from home when an office is available generally does not qualify.
2. Incur additional household costs as a result of working from home -- for example, higher heating, electricity or broadband bills.

The rules changed significantly after the pandemic years. From 2022/23 onwards, HMRC returned to the pre-pandemic requirement that working from home must be a condition of your employment, not simply a preference.

The GBP 6 Per Week Flat Rate

The simplest approach is the GBP 6 per week (GBP 312 per year) flat rate. You do not need to keep receipts or calculate exact costs. HMRC accepts this amount without question.

Tax saved per year:

• Basic-rate taxpayer (20%): GBP 312 x 20% = GBP 62.40
• Higher-rate taxpayer (40%): GBP 312 x 40% = GBP 124.80
• Additional-rate taxpayer (45%): GBP 312 x 45% = GBP 140.40

It is not a huge sum, but it takes under ten minutes to claim and can be backdated up to four years -- so if you have never claimed before, you could recoup up to GBP 499.20 at the higher rate.

The Actual Costs Method: Worth It?

If your genuine additional home costs are higher than GBP 312 per year, you can claim the actual amount instead. You must be able to demonstrate:

• The cost is wholly and exclusively for work purposes
• You have receipts or bills to support the claim

In practice, calculating actual costs involves working out what proportion of your home you use for work, and for how long. HMRC expects a reasonable approach -- for example, one room out of five used for work, eight hours out of 24, gives a fraction you apply to heating and electricity bills.

For most employees, the flat rate is simpler and HMRC-approved. The actual method is more useful if you have a dedicated home office that noticeably increases your bills.

How to Claim as an Employee

Via P87 Form (No Self Assessment)

If you are a PAYE employee and do not already file Self Assessment, the P87 form is the route to claim employment expenses online. Log into your HMRC Personal Tax Account, navigate to "Claim a tax refund" and follow the working from home section. HMRC will adjust your tax code so future pay automatically reflects the relief, and may issue a repayment for past years.

Via Self Assessment

If you already complete a Self Assessment return, include working from home expenses in Box 17 (Other expenses and capital allowances) of the employment pages. Enter the total amount for the year -- GBP 312 for the flat rate, or your calculated actual costs.

By Phone

You can also contact HMRC directly on 0300 200 3300. They can adjust your tax code over the phone, though written claims via your Personal Tax Account leave a clearer record.

Hybrid Workers: Can You Still Claim?

Yes -- hybrid arrangements do not automatically disqualify you. If your employer requires you to work from home for certain days (for example, three days at home, two in the office), you still meet the eligibility test and can claim the full GBP 6/week. The relief is not pro-rated for the days you are in the office.

Where hybrid workers sometimes fall short is on the "required" test. If your employment contract says you can choose to work from anywhere and the office is available to you, HMRC may not accept the claim.

Self-Employed Workers: Simplified Flat Rates

Self-employed people have their own set of flat rates under HMRC's simplified expenses scheme. These are based on the number of hours you work from home each month:

Alternatively, you can calculate actual costs on a proportionate basis -- dividing your home costs by the number of rooms and hours used for business. This often produces a higher deduction but requires careful record-keeping.

Self-employed people record these deductions in the "Allowable expenses" section of their Self Assessment tax return (SA103 short or SA103F full).

Claiming Backdated Relief

HMRC allows claims going back four tax years. In 2026/27 that means you can claim as far back as 2022/23, provided you were eligible in each year. Each year is assessed independently.

If you were eligible in all four years and are a higher-rate taxpayer, the backdated total could reach GBP 499.20. Even at the basic rate it is GBP 249.60 -- well worth the ten minutes of form-filling.

Equipment and Broadband

A separate relief applies to employer-provided equipment -- if your employer supplies a laptop, desk or chair for home working, no benefit-in-kind tax arises. If you personally purchased equipment, you may be able to claim capital allowances or a flat deduction depending on the cost and nature of the item.

Broadband costs are only claimable if you do not already have a broadband connection for personal use. In most cases, broadband is a dual-use expense and HMRC will not allow a deduction for the additional cost unless you can clearly attribute specific usage to work.

Use our Working From Home Tax Relief calculator to see exactly what you can claim this year.