Working From Home Tax Relief: Eligibility, Expenses and How to Claim
Since the pandemic, many more of us are working from home on a regular basis. Not only does this arrangement offer more flexibility, it also helps businesses to manage the cost of running their premises. For those that work from home, there is a specific tax relief that can help to offset the extra costs for things like heating and electricity. In this guide, we explain what the relief is, who is eligible and what expenses they can claim.
What is working from home tax relief?
Working from home tax relief enables employees to claim back some of the household costs that are incurred by doing their job from home. This includes expenses such as additional heating and electricity, as well as business phone calls and internet use that arise from remote working.
Significantly, working from home tax relief is not an allowance provided by your employer to help cover these costs. If your employer fully reimburses your expenses, you will not be able to claim the relief from HMRC. However, if your expenses are only partially reimbursed, or you do not receive an allowance at all, you could be eligible.
Who can claim working from home tax relief?
For 2025/26, you can claim working from home tax relief if:
- Your employer requires you to work from home as part of your job (e.g., they do not have an office, you are required to live far from the office, or you may only go to the office on certain days).
- You have incurred additional household costs as a result (e.g. heating, electricity) which have not been reimbursed by your employer.
If you choose to work from home or work a hybrid pattern where working from home is a convenience rather than a requirement, you cannot claim the relief. Similarly, if you work from home due to health reasons you will not be eligible.
What expenses can be claimed?
Tax relief can be claimed on additional household costs that are wholly and exclusively for work purposes. As such, the costs must relate directly to your job. For example, you might claim for:
- Business phone calls made exclusively for work
- Additional gas, electricity, heating, or water costs for your work area
- Internet costs, but only if your usage has increased due to work
- Cleaning costs for your work area
- Office supplies such as stationery and printer ink used solely for work
Expenses that do not qualify include rent, mortgage payments, home office furniture and equipment, and any expenses that are fully reimbursed by your employer.
How much can you claim?
There are two options: the flat rate allowance and the exact amount spent. The flat rate is simpler, and can be used for hybrid patterns and full working from home arrangements. You claim £6 per week (up to £312 per year) without needing to provide evidence of your expenses. If you work a hybrid pattern, this is pro-rated for the days you work from home.
Alternatively, you can claim the exact amount but must provide receipts and bills. Tax relief is awarded based on your income tax rate.
Help with claims
If you need to confirm your eligibility for the working from home tax relief, or you would like assistance calculating your expenses, speak to an accountant today.
Recent News Articles
Scam alert – the tax and Companies House frauds every business owner needs to know about
Your end-of-tax-year checklist for 2026/27 – key allowances to use before the 5 April deadline
