Work From Home Tax Relief UK — How Much Can You Claim and How to Apply

Millions of people across the UK work from home, either full-time, part-time, or in a hybrid arrangement. Yet a significant number of them are leaving money on the table by failing to claim the working from home tax relief they are entitled to.

Whether you are a self-employed sole trader in Bolton, a limited company director in Manchester, or a remote employee anywhere in the UK, this guide explains exactly what you can claim, how much it is worth, and how to make sure you are not paying more tax than you need to.

Who Is Eligible for Working From Home Tax Relief?

The rules differ depending on your employment status. HMRC treats employees and self-employed individuals very differently when it comes to home working expenses.

Employees (PAYE Workers)

As an employee, you can claim working from home tax relief if HMRC's rules require you to work from home, not simply because it is more convenient. The key test is whether your employer requires you to work from home as a condition of your employment, and whether your home is your primary workplace.

The flat-rate relief available to employees is £6 per week (£312 per year) for the 2025/26 tax year, claimable without needing to provide receipts. At the basic rate of 20%, this is worth approximately £62 per year in reduced tax. Higher rate taxpayers reclaim at 40%, making it worth around £125.

Self-Employed Sole Traders

If you are self-employed and work from home, you have more flexibility. You can claim either a flat-rate simplified expense or calculate your actual home costs and apportion them based on business use. The simplified expense rates set by HMRC are based on hours worked from home per month:

Source: HMRC simplified expenses for the self-employed.

Full details on HMRC's simplified expenses can be found at GOV.UK — Simplified expenses if you're self-employed.

Limited Company Directors

If you operate through a limited company, the rules are different again. You can have your company pay you a tax-free allowance of £6 per week for home working costs. Alternatively, if the company owns or rents a dedicated office space in your home, a formal licence to occupy may allow a larger deduction but this requires careful structuring to avoid creating a capital gains tax issue on your home when you eventually sell it.

This is an area where taking specialist advice pays dividends. Our corporation tax service at YRF Accountants regularly helps Manchester and Bolton directors structure home working arrangements correctly.

What Expenses Can You Claim When Working From Home?

Beyond the flat-rate relief, self-employed individuals and limited company directors can apportion actual household costs based on the proportion of the home used for business and the proportion of time it is used for work. Claimable costs typically include:

• Heating and electricity — proportioned by rooms used and hours worked
• Broadband and telephone — the business-use element of your monthly bill
• Rent or mortgage interest — only the proportion attributable to your workspace
• Home insurance — business use portion
• Cleaning costs — for a dedicated workspace
• Office furniture and equipment — computers, desks, chairs, monitors

The key principle is that the expense must be wholly and exclusively for business use. HMRC will challenge claims that appear disproportionate, so documenting your calculation clearly is essential.

What You Cannot Claim for Working From Home

Equally important is knowing what HMRC will not accept. Common mistakes that trigger rejected claims or HMRC enquiries include:

The HMRC Online Claim Portal for Employees

Employees who are eligible to claim working from home tax relief can do so directly through HMRC's online portal without needing to complete a full self-assessment tax return. The process is straightforward:

• Log into your Personal Tax Account at gov.uk
• Navigate to PAYE tax relief for expenses
• Claim the £6 per week flat rate
• HMRC adjusts your tax code, reducing the tax you pay through PAYE going forward

Backdated claims for previous tax years can also be made, up to four years back. If you were eligible in 2021/22 but did not claim, that refund is still available.
Employees can claim online at GOV.UK — Claim tax relief for your job expenses.

Claiming Working From Home Relief Through Self-Assessment

For sole traders and anyone completing a self-assessment tax return, home working expenses are declared in the self-employment pages of your return. If you use cloud accounting software such as Xero or QuickBooks, these costs should be categorised and tracked throughout the year, so the figure is accurate and auditable when your return is filed.

Our self-assessment service at YRF Accountants includes a thorough review of all allowable expenses ensuring you claim everything you are entitled to without exposing yourself to HMRC challenge.

Frequently Asked Questions — Working From Home Tax Relief

Can I claim working from home tax relief if I work hybrid?

Yes, provided you meet HMRC's eligibility criteria. If your employer requires you to work from home for part of the week and those days form a genuine part of your employment arrangement, you may still qualify for the full £6 per week flat rate relief not a proportion of it.

How much is working from home tax relief worth in 2025/26?

For employees claiming the flat rate of £6 per week, the annual saving is approximately £62 for basic rate taxpayers and £125 for higher rate taxpayers. Self-employed individuals using actual costs can claim significantly more depending on the size of their workspace and level of household expenses.

Can I claim working from home expenses as a limited company director?

Yes. Your company can pay you £6 per week tax-free as a home working allowance. In addition, if you use a dedicated workspace, the company can potentially reimburse a proportion of actual costs. This requires careful structuring to avoid unintended tax consequences, particularly regarding capital gains tax on your home.

Do I need receipts to claim working from home tax relief?

For the flat-rate claim (£6 per week for employees or the HMRC simplified expense rate for the self-employed), no receipts are required. If you are claiming actual costs, you should retain utility bills, broadband invoices, and a clear record of your calculation methodology.

Can I backdate a working from home tax relief claim?

Yes. HMRC allows backdated claims for up to four tax years. If you were eligible to claim in previous years but did not, you can still reclaim that relief, either through the HMRC portal (employees) or by amending a previous self-assessment return.

Not Sure What You Can Claim? Let's Work It Out Together.

Whether you are an employee, sole trader, landlord, or limited company director, working from home expenses are one of the most commonly underclaimed reliefs in the UK tax system. At YRF Accountants we make sure you are claiming everything you are legitimately entitled to nothing more, nothing less.

Book your free 30-minute consultation: calendly.com/yrfaccountants-info/30min