If you work from home regularly — whether fully remote or hybrid — you may be able to claim tax relief on your additional household costs. The rules tightened after the pandemic-era blanket claims, but there are still legitimate ways to reduce your tax bill.
Who can claim?
You can claim WFH tax relief if your employer requires you to work from home (or there is no reasonable alternative — e.g. no office space available). You cannot claim simply because youchoose to work from home or because your employerallows it.
The key test: would you be able to do your job at the employer's premises if you wanted to? If yes, you likely cannot claim.
The flat-rate method (£6/week)
HMRC allows a flat-rate deduction of £6 per week (£312/year) without needing to provide receipts. At the basic rate, this saves you £62.40 per year; at the higher rate, £124.80.
You can claim this through the GOV.UK portal (P87 claim) or on your Self-Assessment return.
The actual expenses method
If your actual additional costs exceed £6/week, you can claim the real amount instead. You will need evidence (bills before and after starting WFH) for costs like:
- Heating and electricity (proportional to work hours/rooms)
- Metered water (if increased due to WFH)
- Business phone calls
- Broadband (business proportion)
You cannot claim mortgage interest, rent, council tax, or broadband if you would have had it anyway. Only the additional cost attributable to working from home qualifies.
Employer WFH payments
Your employer can pay you up to £6/week (or £26/month) tax-free to cover WFH costs — no receipts needed. Payments above this are taxable unless your employer has evidence of higher actual costs.
If your employer already pays you this allowance, you cannot also claim from HMRC for the same costs — no double-dipping.
Equipment and furniture
If your employer provides equipment (laptop, monitor, desk chair), this is not a taxable benefit provided it is mainly for work use. If you buy equipment yourself and your employer does not reimburse you, you may be able to claim tax relief on it — but only if it is necessary for your job and used exclusively (or almost exclusively) for work.
How to claim
- PAYE employees (no Self-Assessment): use HMRC's online P87 form or call HMRC to have your tax code adjusted
- Self-Assessment filers: include the claim in the Employment section of your return
See the impact on your pay
The tax relief reduces your taxable income, which means slightly higher take-home pay. Use the income tax calculator to see your current take-home position and understand your marginal rate — that is the rate at which WFH relief saves you money.