Remote and hybrid work have reshaped the way people across the UK manage their jobs and daily routines. With many professionals spending part or all of their time working from home, questions around tax deductions have become more relevant than ever. The good news is that eligible employees and self-employed individuals can still claim tax relief on certain household expenses.
HMRC recognises that working from home can increase costs such as electricity, heating, and water. To help with this, they allow two main ways to claim: the simplified flat rate of £6 per week and the actual cost method, which is based on the specific portion of your household bills used for work.
Both methods are designed to make claiming fair and manageable, but the right choice depends on your work setup and expenses. Understanding the differences helps you make the most of your allowance while staying compliant with HMRC rules.
Next, we’ll explain who qualifies for working from home tax relief and what conditions you need to meet before making a claim.
Who Can Claim Working from Home Tax Relief
Not everyone who works from home is automatically entitled to tax relief. HMRC has specific rules to determine who qualifies, based on employment status and work arrangement. Understanding these criteria helps you avoid errors when making a claim.
For employees:
- You may claim tax relief if your employer requires you to work from home and does not reimburse your additional household costs.
- Eligible expenses include extra electricity, heating, and water used while working.
- You cannot claim if you choose to work from home for personal reasons such as convenience or comfort.
- Claims can be made directly through your tax code or via a self-assessment return.
For self-employed individuals:
- You can claim a portion of household costs if you use part of your home for business on a regular basis, such as an office, studio, or workspace.
- Allowable expenses include a fair share of energy, internet, phone, and cleaning costs.
- HMRC allows you to calculate this using either a simplified flat rate or actual use based on time and space.
For full eligibility details, check HMRC’s official guidance on tax relief for employees working from home.
Once you confirm that you qualify, the next step is to choose the best way to calculate your claim—either the flat rate or the actual cost method.
To keep your records organised and accurate, check out our list of the top 5 Xero apps that streamline your bookkeeping.
The Simplified Flat Rate Method (£6 per week)
The simplified flat rate method is the easiest way to claim tax relief for working from home. Instead of calculating the exact portion of your household bills used for work, HMRC allows you to claim a flat rate of £6 per week without needing to provide receipts or detailed records. This approach saves time and reduces the risk of errors when filing your claim.
This flat rate allowance, introduced in April 2020, covers common additional household costs that arise from working at home, such as:
- Heating and lighting your workspace
- Increased water or electricity use
- Small household wear and tear caused by work activities
It does not include expenses like broadband or phone bills unless those services are used exclusively for work purposes, which is uncommon for most employees.
The amount you can claim depends on how long you work from home during the tax year. For example, if you worked from home for all 52 weeks, you could claim:
£6 × 52 weeks = £312 per tax year
You can claim this directly through your tax code by logging into your HMRC online account or by entering it in your self-assessment tax return if you’re self-employed.
This method suits employees or small business owners who work from home regularly but don’t want the complexity of tracking bills. However, if your home energy costs have risen significantly or you use a dedicated office space, the actual cost method may result in greater tax relief—which we’ll explore next.
You can include this quick interlink statement near the conclusion or after explaining tax efficiency:
For a broader look at how tax relief can support your business finances, explore our Annual Investment Allowance tax relief guide to see how capital purchases can further reduce your taxable profits.
The Actual Cost Method
The actual cost method provides a more accurate way to claim tax relief by calculating the true cost of working from home. Unlike the flat rate approach, this method requires you to work out the specific portion of your household expenses that relate directly to your work activities. It can result in a larger claim, especially if you spend most of your time working from home or use a dedicated workspace.
Allowable expenses typically include:
- A proportion of electricity, gas, water, and council tax
- Internet and phone line costs used for work
- Office furniture or equipment depreciation, provided these were not reimbursed by your employer
- Cleaning costs for your dedicated workspace
To calculate your claim:
- Identify how many rooms in your home are used for work.
- Estimate the percentage of time that space is used for work (for example, 40 hours a week out of 168 total).
- Apply that percentage to your total annual household bills.
Example:
If your electricity bill is £1,200 a year, you use one out of five rooms as an office, and you work there 40 hours per week (around 24% of total weekly time), your calculation would be:
£1,200 × (1/5) × 0.24 = £57.60 claimable for electricity.
You can find full guidance on this approach in HMRC’s business expenses for the self-employed.
Whichever method you use, it’s vital to keep accurate records and supporting evidence to back up your claim.
If you’re a business owner managing home-based operations, our guide on what happens if you go over the VAT threshold in the UK explains when registration becomes mandatory and how to stay compliant.
Records and Evidence You’ll Need
Keeping accurate records is essential when claiming tax relief for working from home. HMRC may ask for evidence to support your claim, so it’s important to maintain clear documentation that shows how you calculated your expenses and proves your eligibility.
For employees
- A letter or email from your employer confirming that you are required to work from home
- Copies of utility bills such as gas, electricity, or water that show your household costs
- Any receipts for work-related purchases like equipment or office supplies that weren’t reimbursed by your employer
For self-employed individuals
- Receipts, invoices, and bills for household utilities and business expenses
- Proof of workspace use such as photos, floor plans, or a written note describing how often you use your home office
- Time records showing how many hours per week the space is used for business
HMRC can request to review your records for up to five years after the submission deadline, so storing everything digitally helps avoid last-minute issues. Using cloud-based accounting software like Xero lets you upload receipts, track expenses, and keep your records organised in one place.
Make home working tax claims stress free. Speak to eAccounts today for expert tax and accounting support.
Comparing the Two Methods
Choosing between the simplified flat rate and the actual cost method depends on how much you work from home and how high your household expenses are. The table below highlights the main differences.
| Criteria | Simplified Flat Rate | Actual Cost Method |
| Claim value | £6 per week (£312 per year) | Based on actual expenses |
| Record keeping | Minimal | Detailed bills required |
| Best for | Light home use, employees | Regular home workers or self-employed |
| Time required | Quick | More complex |
| Accuracy | Fixed estimate | Reflects real usage |
The flat rate method works best if you want a simple claim without detailed calculations. It suits employees or anyone who works from home part time and has moderate energy costs.
The actual cost method is ideal if your work setup involves long hours, high utility bills, or a dedicated workspace. It takes more effort to calculate but can lead to a larger claim.
If you’re unsure which approach gives you the best return, seek professional advice before filing to avoid mistakes or underclaiming what you’re entitled to.
How to Claim Your Tax Relief
The process of claiming tax relief for working from home depends on whether you’re an employee or self-employed. Both routes are straightforward once you know where to apply and what information to prepare.
For employees
- Log in to your HMRC online account.
- Complete the online form with details of your employment and the period you were required to work from home.
- HMRC will adjust your tax code to include the relief, reducing the amount of tax you pay in future pay periods.
For self-employed individuals
- Record all relevant expenses and calculate your allowable claim using either the flat rate or actual cost method.
- Enter the total under “business expenses” in your annual self-assessment tax return.
- Keep digital or paper copies of all receipts, bills, and calculations in case HMRC asks for supporting evidence.
Always check with your employer before making a claim. If they already reimburse your home-working costs, you cannot claim tax relief on the same expenses. HMRC may disallow duplicate claims if they find overlap.
Submitting accurate information ensures your claim is processed quickly and reduces the risk of future adjustments or penalties.
Unsure which method suits you best? eAccounts can help you calculate and file your home working expenses accurately, ensuring you claim the full relief you deserve.
Common Mistakes to Avoid
Claiming tax relief for working from home is usually straightforward, but certain mistakes can lead to rejected claims or reduced refunds. Make sure to avoid these common errors.
- Claiming for personal costs such as Netflix subscriptions, snacks, or home improvements. These are private expenses and not eligible for tax relief.
- Double claiming reimbursed expenses when your employer has already covered part or all of your home-working costs. You can only claim for what you personally pay.
- Not adjusting for part-time home working if you only work from home on specific days or for part of the year. Your claim must match the actual time spent working.
- Forgetting to update your claim when your circumstances change, such as returning to office work or moving to a new property.
- Not keeping proper documentation including receipts, bills, or proof of employer requirement. HMRC can request evidence up to five years after the submission deadline.
Avoiding these mistakes helps ensure your claim is accurate and compliant. Staying consistent with record keeping and updates will make future claims smoother and more reliable.
Wrapping Up
Home working tax relief remains a practical and valuable benefit for many UK employees and self-employed professionals. With the rise of flexible and hybrid work setups, it’s worth taking the time to understand what you can claim and how to do it correctly.
Whether you choose the £6 per week flat rate for simplicity or calculate actual costs for greater accuracy, keeping detailed records is essential. Proper documentation not only ensures compliance with HMRC but also helps you maximise your claim without unnecessary stress.
It’s also wise to review your tax relief each year. Energy prices, work habits, and household arrangements can change, which may affect which method works best for you.Simplify your tax year with tailored accounting advice. Contact eAccounts today to maximise your tax efficiency and ensure you’re claiming everything you’re entitled to.
FAQs
Can I still claim home-working tax relief in 2025?
Yes. HMRC still allows claims if your employer requires you to work from home and doesn’t reimburse your expenses.
Do part-time or hybrid workers qualify?
Only if you must work from home for part of your role, not by choice. You can claim for the specific period required.
Can I claim for furniture or equipment?
You can claim if it’s essential for your work and not reimbursed by your employer. Keep purchase receipts.
How do self-employed people claim?
Include your calculation in your Self Assessment under “business expenses” and keep evidence for five years.
Should I use the flat rate or actual cost method?
Use the flat rate for simplicity; use actual costs if your energy bills or workspace usage are significant.
