How to Claim Working From Home Tax Relief in 2025

Working from home has become a normal part of life for many, but did you know it could also save you money? With the right steps, you might be able to claim tax relief for those extra household expenses like heating, electricity, or internet bills. It’s not just about comfort; it’s about easing the financial load that comes with remote work.

Understanding the rules might feel a bit tricky, especially with recent changes tightening eligibility. But don’t let that put you off! By knowing what qualifies and how to claim, you could reduce your tax bill and keep more of your hard-earned cash. Whether it’s for this tax year or even a previous one, there are options worth exploring.

What Is Working From Home Tax Relief?

Working from home tax relief helps you lower your tax bill by claiming deductions for extra household costs resulting from remote work. These increased expenses can include additional heating, electricity, or internet bills incurred due to your work. But, this relief isn't automatically granted; you must satisfy specific eligibility criteria set by HMRC.

Eligible Situations for Claiming Tax Relief

You can claim tax relief if you're required to work from home by your employer and you're paying for additional expenses that haven't been reimbursed. Eligibility applies if:

• Your employer doesn't provide an office, or your job requires you to live far from the office.

• Your home serves as your workplace, with substantive work duties performed from there.

• You're incurring extra household costs directly related to working from home.

You cannot claim this relief if working from home is a personal choice, such as opting to work remotely even when an office is available.

Types of Costs You Can Claim

HMRC allows deductions for only a limited range of work-related expenses, such as:

• Business phone calls.

• Increased gas and electricity used in your work area.

You cannot claim on items used for both personal and business purposes, like broadband access or rent.

Amounts You Can Claim

You can either claim:

• A flat-rate of £6 per week without needing to show receipts.

• The exact amount of additional costs incurred, provided you submit evidence like receipts or itemised bills.

If you choose the latter, be sure to maintain accurate records to support your claim.

How to File a Claim

Follow these steps to apply for working from home tax relief:

1. Provide Evidence: Retain copies of receipts if claiming exact costs.

2. Self-Assessment: Include claims in your tax return if you complete one.

3. HMRC’s Online Service: Use the government portal to check eligibility and file your claim if you don't file a self-assessment.

4. Tax Code Adjustments: HMRC typically updates your tax code for current-year claims, reducing the tax you pay.

5. Previous Tax Years: Claims can cover the current year and the last four tax years. HMRC may issue a refund or adjust prior tax codes accordingly.

Recent Changes to HMRC Rules

HMRC has tightened criteria for tax relief, making it less accessible than during the pandemic. Relief is no longer applicable if flexible remote work is an employee preference, even if mentioned in your contract.

For tax savings, guarantee your claim meets the updated guidelines and only includes allowable costs. Accuracy in submissions helps avoid delays and ensures smooth processing.

If you're unsure about eligibility or filing, consulting a professional accountant through Accountant Connector can simplify the process and help you maximise your tax benefits.

Who Is Eligible For Working From Home Tax Relief?

Eligibility for working from home tax relief relies on specific criteria established by HMRC. These guidelines guarantee that the relief is reserved for individuals who genuinely need to work remotely due to job requirements, not personal preference.

Employer Requirement

To qualify, your employer must require you to work from home as a necessity. If working remotely is offered as a flexible option or is voluntarily chosen, you’re ineligible for tax relief.

Additional Costs

You must incur increased home-related expenses due to working remotely, such as higher heating, electricity, or internet bills. Relief is granted only for costs directly attributable to your work. Non-reimbursed expenditures also play a role; if your employer fully covers these costs through allowances, further tax relief cannot be claimed.

Work Location

You must demonstrate that your home acts as your workplace. It's necessary to show that substantive duties, tasks critical to your role are completed within your home, making it your primary remote working location.

Periods of Necessity

Tax relief is available during specific periods of enforced remote work. For example, this includes times when your workplace was closed, you were instructed to isolate, or lockdowns required remote work. For previous tax years like 2020/21 and 2021/22, you could claim the entire year’s relief even if you worked from home part-time.

Current Rules

For 2025/26, HMRC’s stricter guidelines mean you’re only eligible if you live far from your employer’s office or if your employer has no office. Remote work due to personal preference doesn't qualify, even if included in your contract. Always check the latest HMRC guidance to confirm eligibility.

What Expenses Can Be Claimed?

When working from home, you can claim tax relief on specific expenses directly caused by your job. These need to be additional costs incurred because of remote work and not reimbursed by your employer. Here's a breakdown of key categories:

Utility And Office Supplies

You can claim tax relief on additional household utilities like heating, electricity, and metered water. To calculate these costs, compare your usage before and after you began working from home. Only the portion used for work is eligible, so keep detailed records.

Business phone calls and dial-up internet access used exclusively for work may also qualify. Stationery items like paper, pens, or printer ink bought specifically for your job can be included. Items with mixed-use, such as general broadband or rent, aren't eligible.

Technology And Equipment

If you purchase essential equipment like laptops, keyboards, or ergonomic chairs without employer reimbursement, tax relief may apply. These items must strictly serve your job's requirements, falling under HMRC’s “wholly, exclusively, and necessarily” rule.

Home office furniture can only be claimed if it’s a direct work necessity and approved as such, though HMRC rarely accepts these claims. Technology upgrades like additional monitors qualify if genuinely needed for your role.

How Much Can You Claim?

The amount you can claim for working from home tax relief depends on the rate of income tax you pay. HMRC allows eligible taxpayers to offset these costs in two ways: a flat rate or by claiming exact expenses.

Flat-Rate Relief

You can claim £6 per week without needing to provide evidence of your expenses. This straightforward option suits those with lower additional costs or those without the time to calculate exact amounts. The weekly savings depend on your income tax rate:

• Basic Rate (20%) Taxpayers: £1.20 per week, equalling £62.40 per tax year.

• Higher Rate (40%) Taxpayers: £2.40 per week, totalling £124.80 annually.

• Additional Rate (45%) Taxpayers: £2.70 per week, or £140.40 for the year.

Exact Expenses Method

If your extra work-related costs exceed £6 per week, you can claim tax relief on the precise amount. To qualify, you must keep records like receipts or bills proving the expenses are solely for business purposes. Common examples include:

• Increased electricity and heating costs due to after-hours work.

• Internet costs directly linked to work tasks, calculated proportionally.

Using this method might result in larger claims, but it's more complex and requires detailed documentation.

Backdated Claims

You can still apply for relief if you missed claiming in previous tax years. HMRC accepts backdated claims for up to four years. For example, if you worked from home during 2020/21 and 2021/22 but didn’t claim, you can file for those periods now. Backdated claims can significantly increase the total relief you receive.

Relief Calculation Tips

• Check Your Actual Costs: Compare your additional expenses to the flat rate. If the flat rate doesn’t cover your costs, document the higher amount.

• Use Official Tools: HMRC provides an online calculator to estimate your claim amounts.

• Keep Evidence: File all expense-related invoices, annotated bills, and receipts to support your claim.

Working from home tax relief is an individual benefit, so each household member can apply if eligible. For example, a couple working remotely can both claim relief.

For exploring these rules and understanding your specific circumstances, consulting an expert is beneficial.

How To Claim Working From Home Tax Relief

Claiming working from home tax relief might seem intimidating, but it’s manageable when approached step-by-step. Whether you're filing for the current tax year or backdating your claim, understanding the process is key to ensuring you reduce your taxable income efficiently.

Claiming Directly With HMRC

The simplest way to claim is via HMRC’s online service. If you don’t file a self-assessment tax return, this is your go-to option. Log into your Government Gateway account and navigate to the working from home section. You’ll answer a series of eligibility questions before submitting your claim.

• Eligibility check: Confirm your employer requires you to work from home, and your expenses aren't reimbursed. This ensures HMRC accepts your claim.

• Flat rate or detailed claim: Choose between the flat-rate relief (£6 per week) or exact expenses. The flat rate requires no evidence, while detailed claims need receipts and bills proving the additional costs.

• Supporting documents: If opting for the exact costs method, gather relevant utilities bills, receipts for equipment, or internet costs showing a direct increase due to remote work.

Using this online system adjusts your tax code directly, making the process quicker for current tax years. For employment-related expenses under £2,500 total, a P87 form can be submitted instead.

Claiming For Previous Tax Years

If you’ve missed claiming relief for previous years, HMRC allows backdated claims up to four years. For example, claims for the 2020/21 tax year can still be made until 5 April 2025.

• Eligibility per year: Guarantee you met the criteria during the respective year, such as enforced remote working or unreimbursed expenses. You can claim even for partial periods (e.g., lockdowns).

• Online portal: Backdated claims are processed online through the same system that handles current year claims.

• Tax refund: HMRC calculates overpaid tax after reviewing your claim and typically issues a refund via cheque or your bank account.

Submitting retrospective claims guarantees no missed savings, particularly if your remote work conditions and increased expenses were significant. Keeping consistent, detailed records simplifies this process.

Conclusion

Working from home can bring unexpected costs, but understanding your tax relief options helps ease the financial strain. By meeting HMRC's criteria and keeping accurate records, you can claim back eligible expenses and reduce your tax bill. Whether you choose the flat-rate method or detailed claims, taking the time to explore your options is worth it.

If you're unsure about the process or recent rule changes, seeking expert advice ensures you're fully compliant while maximising your savings. Don’t overlook the opportunity to claim for previous years if eligible, it could make a significant difference.

Frequently Asked Questions

Who is eligible for working from home tax relief?

To qualify, you must be required to work from home by your employer and incur extra costs directly related to your job. If you choose to work remotely for personal reasons, you are not eligible under HMRC’s criteria.

Can I backdate my working from home tax relief claim?

Yes, you can backdate claims for up to four years, depending on eligibility for each year. Ensure you have proper evidence or records of your claimable expenses for the relevant tax periods.

How do I make a claim for working from home tax relief?

You can claim directly via HMRC’s online service or include the claim in your self-assessment tax return. You may need to provide evidence for expenses if claiming exact costs rather than the fixed-rate amount.