Working from Home Tax Relief Calculator

Employees who are required to work from home by their employer can claim tax relief on additional household costs. The simplest method is the flat-rate deduction of £6 per week (£312 per year) which does not require receipts. This gives a tax saving of £62.40 for basic-rate taxpayers or £124.80 for higher-rate taxpayers.

Alternatively, you can claim the exact additional costs of working from home — such as the proportion of your heating, electricity, broadband and phone bills attributable to work. This requires keeping records and calculating the business-use percentage. HMRC accepts a reasonable apportionment method.

Claims can be made through your employer (who adjusts your tax code) or via Self Assessment. You can backdate claims for up to four years. Note: you cannot claim if you choose to work from home — it must be a requirement of your job. This calculator shows the relief available under both the flat-rate and actual-cost methods.

UK Working From Home tax relief 2026/27. Flat rate £6/week (£312/year) tax-free if required to work from home — no receipts needed. Higher-rate taxpayer saves £125/year (40% of £312); basic rate £62/year. Claim via gov.uk tax relief form OR Self Assessment OR via P87 form (employees). Backdate up to 4 tax years if previously eligible. Alternative: claim actual costs (need receipts and apportionment of utilities) — usually only worth it if heating/electricity costs exceed £6/week directly attributable to work.

Who qualifies — the 'required' rule change. Pre-2022: anyone working from home (even part-time, voluntarily) could claim. Post-2022 (HMRC tightened rules): only those REQUIRED to work from home qualify. 'Required' = no office available, OR contract specifies WFH. Voluntary hybrid (employee chose to work some days from home): NOT eligible. Forced WFH days due to office capacity limits: arguably eligible. Self-employed: separate rules — claim 'use of home as office' via Simplified Expenses (£10-£26/month) or actual costs.

Employer reimbursement vs personal claim. Employer can pay £6/week directly to employees tax-free (HMRC-approved without records). Better for employee: receive untaxed at source vs claiming relief on tax later. Many UK employers introduced this 2020-2021 — check with HR. If employer pays more than £6/week without receipts: excess becomes taxable benefit. Employer pays exact cost with receipts: fully tax-free regardless of amount. Best practice: ask employer to reimburse £6/week; only claim relief yourself if employer doesn't.

Self-employed home office expenses. Simplified Expenses (HMRC flat rates): £10/month if 25-50 hours/month working from home; £18/month if 51-100 hours; £26/month if 101+ hours. Alternatively actual costs: percentage of home used × time of use × actual utility costs (calc complex but can exceed simplified if utility costs high). Sample: 1 room of 5 used 80% for business × £2,400 annual utilities = 16% × £2,400 = £384/year deductible (£32/month — exceeds simplified £26 if heavy WFH).

What doesn't qualify for WFH relief. Mortgage interest (separate Capital Allowance for asset use); council tax (treated as personal cost regardless of business use); rent (with limited exceptions for business-tenancy element); standard broadband (private use intermingled — only business-line second connection eligible). Furniture and equipment: capital allowances available for business-use proportion. Decor/improvements to home office: NOT deductible (capital, not revenue, and treated as personal). HMRC investigations of WFH claims: common — keep records of actual hours worked from home.