Working From Home Tax Relief 2026/27: Who Can Claim and How Much

The COVID legacy: what changed after April 2022

During the pandemic, HMRC temporarily relaxed the WFH tax relief rules. From 6 April 2020 to 5 April 2022, any employee working from home for any reason (including personal preference) could claim the full year's relief simply by confirming they worked from home at some point during the tax year.

That temporary rule ended on 5 April 2022.

From 2022/23 onwards, the standard HMRC test applies: to claim WFH relief as an employee, you must be required by your employer to work from home — and that requirement must satisfy the "wholly, exclusively and necessarily" test. Choosing to work from home when your employer offers an office is not sufficient.

Who qualifies for WFH tax relief in 2026/27?

You can claim as an employee if:

1. Your employment duties require you to work from home — either always or on specific days.
2. No other workplace is available where you could reasonably perform those duties.
3. You bear additional household costs as a result (heating, electricity, internet — not rent, which would need to be incurred anyway).

Situations that typically qualify

• Your employer has no office premises and you work entirely from home.
• You work from home for a significant portion of the week and your employer has confirmed this in writing as a requirement.
• You live far from the office and your contract explicitly requires home-based work.
• You're a homeworker under a formal homeworking policy.

Situations that typically do not qualify

• You choose to work from home a few days per week but an office is available.
• A hybrid arrangement where the office is your primary place of work but you occasionally WFH for convenience.
• Your employer closes the office occasionally but does not require you to work from home as a contractual matter.

If in doubt, ask your employer for written confirmation that you're required to work from home — this is the key evidential document for any HMRC enquiry.

The flat rate: £6/week (£312/year)

The standard flat-rate relief for 2026/27 is £6 per week, which equals £312 per year. You do not need to provide receipts or evidence of actual costs to claim this amount.

The flat rate is applied to your tax relief — you get £6/week deducted from your taxable income, not £6/week in cash. The actual saving depends on your tax rate:

These are modest sums individually, but the backdating provision means you can claim multiple years at once.

Claiming actual costs (if higher than £6/week)

If your actual additional household costs exceed £6/week, you can claim the real amount. You'll need to calculate and evidence:

Allowable costs:

• Additional electricity and heating (the extra portion attributable to working from home)
• Additional broadband cost (only the increase — not your whole internet bill if you'd have it anyway)
• Business phone calls (not line rental)

Not allowable:

• Rent or mortgage interest (these are fixed costs regardless of WFH)
• Council tax
• The whole internet bill if you would have had it anyway

How to apportion heating/electricity

A typical HMRC-accepted method:

1. Calculate the number of rooms in your home.
2. Calculate the proportion of time the work room is used for work vs personal use.
3. Apply that fraction to the relevant element of your fuel bills.

Example: David, who works from home 5 days/week in a 5-room house, calculates:

• Work room: 1/5 of house = 20% of space
• Used for work: 8 hours out of 24 hours per weekday = 33% of the day
• Working days: 5/7 of the week = 71%
• Extra fuel proportion: 20% × 33% × 71% = 4.7% of annual fuel bills

If David's annual fuel bills are £2,200: 4.7% = £103.40/year additional — greater than the £6/week flat rate.

At basic rate, David would save £103.40 × 20% = £20.68 more than the flat rate by claiming actual costs. Whether this is worth the admin effort depends on individual circumstances.

How to claim as an employee

Option 1: P87 form (most common for employees)

If you're not in Self Assessment, use the P87 form on gov.uk. As of 2025, you can submit this online:

• Visit: gov.uk/tax-relief-for-employees
• Log in with Government Gateway or GOV.UK One Login
• Select "Working from home" as the expense category
• Enter your weeks of WFH (up to 52 per year) or annual amount
• HMRC will adjust your tax code to give the relief through payroll, OR issue a refund for past years

Option 2: Self Assessment return

If you already complete a Self Assessment return, include WFH expenses in the employment expenses section (box on the employment pages).

Backdating — claim up to 4 years

You can backdate claims for:

• 2022/23 (year ended 5 April 2023)
• 2023/24 (year ended 5 April 2024)
• 2024/25 (year ended 5 April 2025)
• 2025/26 (year ended 5 April 2026)
• 2026/27 (current year)

Total potential claim at flat rate, 5 years, basic rate: 5 × £62.40 = £312.00 back in your pocket. Higher rate, 5 years: 5 × £124.80 = £624.00.

Claims for 2022/23 must be submitted before 5 April 2027 (4-year window).

Self-employed WFH tax relief — different rules

If you're self-employed (sole trader or partnership), the rules are more flexible. You have two options:

Option A: HMRC simplified flat rates

HMRC publishes monthly flat rates based on hours worked from home:

If you work 101+ hours/month from home: £26 × 12 = £312/year deductible. At 20% tax + Class 4 NI 9%, the saving is roughly £312 × 29% = £90.48/year.

Option B: Actual costs (proportion of home used for business)

Self-employed workers can claim a proportion of rent, mortgage interest, council tax, utilities, and insurance. This is more complex to calculate but can yield a larger deduction for those with home offices or significant business use.

Caution: Claiming a room "exclusively" for business can have CGT implications on a future home sale (private residence relief may not cover that room). The "exclusive use" test is strict — if the room is also used as a guest bedroom or family space, it does not meet the exclusive use test for the full deduction. Many accountants recommend the proportionate-use approach rather than exclusive use.

Self-employed worked example

Sarah, a freelance designer, works 120 hours/month from home. She opts for the simplified flat rate:

• Deduction: £26/month × 12 = £312/year
• Tax saving (20% IT + 9% Class 4 NI): 29% × £312 = £90.48/year

Alternatively, she calculates actual costs:

• Proportion of home: 1 room in 4-room flat = 25%
• Use of room: 70% business (also used as spare room occasionally)
• Actual proportion: 25% × 70% = 17.5%
• Annual utility/rent portion: 17.5% of relevant bills = approx £620
• Tax saving: £620 × 29% = £179.80/year — materially better than flat rate

Common mistakes to avoid

1. Claiming when you chose to WFH — HMRC is increasingly scrutinising P87 claims post-2022. Ensure you have evidence your employer requires it.
2. Claiming the same costs twice — if your employer reimburses you for WFH expenses, you cannot also claim tax relief on those costs.
3. Not keeping records — if HMRC investigates, you'll need evidence: employer letter, utility bills (for actual costs method), diary of WFH days.
4. Missing the backdating window — 4 years is the limit. The 2022/23 window closes 5 April 2027.
5. Self-employed: exclusive use trap — claiming exclusive use of a room for your home when it's not truly exclusive can create problems at sale.

Quick decision guide

Claim summary for 2026/27

• Flat rate: £6/week (£312/year) — no receipts needed
• Saving at basic rate: £62.40/year
• Saving at higher rate: £124.80/year
• Backdating available: 4 years (2022/23 to 2025/26)
• How to claim: P87 online (employees), Self Assessment (SA filers and self-employed)
• Key test: employer-required WFH, not personal choice

Related reading:

• Self-assessment: allowable expenses guide
• May 2026 payslip changes
• Sole trader vs limited company 2025/26

Sources

• gov.uk: Claim tax relief for your job expenses — working from home
• HMRC: EIM32760 — home office expenses
• gov.uk: Simplified expenses for self-employed
• HMRC: P87 — Claim tax relief on job expenses