work from home uk tax rebate

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How to claim the working from home tax relief.

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Updated May 9, 2024

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Important information

Tax treatment depends on your individual circumstances and may be subject to future change.

What are the key risks?

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Were you told by your employer to work from home during the pandemic? If so you can apply for tax relief up to £140 per tax year .

Some workers will be able to claim for this 2022/23 tax year too, giving them up to £420 in tax relief . The money is to cover extra costs such as higher heating and broadband bills. Don’t worry if you have yet to claim as the HMRC deadline is a couple of years away.

In the article, we explain:

• How does WFH tax relief work?
• How to claim WFH tax relief
• When is the deadline to apply for the relief?
• Can you make a claim for the 2022/23 tax year?
• Who is eligible and how do you check?
• How much will you get in WFH tax relief?

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What is WFH tax relief?

As a result of the pandemic, millions of people were told to work from home by their employers over the past couple of years.

While commuting costs will have fallen, other bills such as your gas, electricity and internet are likely to have increased as a result of you spending more time at home.

To help cover these extra costs, HMRC allows you to claim tax relief. You can do so using a designated online portal .

Around three million people made a claim for the entire 2020/21 tax year.

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How to claim working from home tax relief

To claim for the working from home tax relief:

• Head to the government’s microservice portal and answer the eligibility questions
• During this process you also be asked about other work-related expenses that you could claim for too
• your national insurance number
• a recent payslip or P60 or a valid UK passport
• Once logged in, state the date that you started working from home
• If you have been working since the start of the first lockdown (23 March 2020 ) put that date in and you will get a rebate for two whole tax years (6 April 2020 to 5 April 2021 and 6 April 2021 to 5 April 2022) and the two weeks extra
• If you have already claimed for 2020/21 tax year, you will not automatically receive a refund for the 2021/22 tax year. You must again use the microservice portal to apply.

NOTE: If you do self-assessment, you won’t be able to use HMRC’s online portal; instead apply for the tax relief in your tax return . 

How is the tax relief paid?

You can backdate a claim to cover the first tax year of the pandemic (2020/21) and the two weeks before as well as the second year (2021/22), if you have been working at home since the first lockdown was announced on 23 March 2020.

Where an employee meets the criteria to claim tax relief for working from home and makes a claim for previous years, HMRC will issue a tax refund.  This is usually in the form of a cheque.

If you are claiming for the current tax year then you will pay less tax when you are paid. This means your tax code will change.

How much tax relief will I get?

There are two options to getting the tax relief:

• Your employer: can cover your expenses and pay them into your wages tax-free
• You claim: given the difficult time that many businesses have faced, you are more likely to claim tax relief from HMRC instead of your employer covering the costs

NOTE: You can’t do both. You will be unable to claim tax relief if your employer is paying your expenses.

If you do claim yourself, how much you will get depends on the rate of income tax you pay:

• Basic-rate taxpayers get £1.20 a week (tax relief of 20% on £6) = £62.40 per tax year
• Higher-rate taxpayers receive £2.40 a week (tax relief of 40% on £6) = £124.80 per tax year
• Top-rate taxpayers will receive £2.70 a week (tax relief of 45% on £6) = £140.40 per tax year

If you didn’t claim for last tax year or the one before but worked from home, you can backdate your claim. This means you would get up to two full years’ payment as a lump sum in your next salary.

If you are eligible to claim for the current tax year too, that’s three years of tax rebates, meaning:

• Basic-rate taxpayers could receive as much as £187.20
• Higher-rate taxpayers could get up to £374.40
• Top-rate taxpayers could receive up to £421.20

HMRC will accept backdated claims for up to four years.

Working-from-home tax relief is an individual benefit, so a couple or a group of flatmates can all claim it if you are all working from home.

You can use our income tax calculator to work out your payments.

What is the deadline to apply for WFH tax relief?

If you worked from home during the 2020/21 and 2021/22 tax years but failed to apply for the rebate, you can still do so. HMRC says it has no plans to close the online portal or microsite.

Claims can be backdated, meaning that you may be eligible for up to £280 tax relief if you claim for both last tax year and the one before (essentially the two years during the pandemic). Few workers will be able to claim for the current tax year.

HMRC confirmed that you have until the 5 April 2025 to make claims for 2020/21 tax year, and until 5 April 2026 make claims for 2021/22.

Can I still claim for working from home tax relief in 2022/23 tax year?

Some workers will be able to claim for the current tax year. But many people won’t be eligible for this tax year as it is no longer a legal requirement to work from home.

You can claim if you have additional household costs as a result of working from home and your employer has not already paid these extra expenses.

In order to claim for this tax year, which started on 6 April 2022, one of the following must apply:

• You can’t perform your job on your employer’s premises because they don’t have the facilities; for example, your employer has a small office with no space for you to work there
• Your job requires you to live so far from your employer’s premises that it would be unreasonable for you to travel there every day; for example, the workplace is in Birmingham but your job requires you to work in Scotland
• Or government restrictions mean you must work from home; though these restrictions have now been removed so can no longer be applied for this tax year

To claim tax relief, you cannot have just chosen to work from home.

HMRC also warned that employers who simply tell employees to work from home may not be sufficient to claim tax relief. So if you are hybrid working (that is, working from home for part of the week), you can only claim tax relief if there is a lack of appropriate facilities on your employer’s premises to do your job.

The government has outlined several examples where staff can claim working from home tax relief.

If you do meet the criteria for this tax year you could be entitled to as much as £420 in pandemic-related tax relief when you include the past two tax years.

Does my tax code change if I work from home?

Yes, if you are in receipt of the work-from-home tax rebate then your tax code will change.

You can usually find your tax code on your pay slip. The most common tax code for the 2022/23 tax year is 1275L. The number represents the personal tax allowance for most earners in the UK, which is £12,750 – this is the amount you can earn in a year tax-free.

So if you’re in receipt of the tax rebate, this code will change to reflect the fact that you have a larger personal tax allowance. Although bear in mind that this number could be different for other reasons, such as if you’re receiving a different tax benefit like a company car.

If you have claimed the working from home tax benefit in the past and you’re no longer eligible, you should check your PAYE tax code to ensure you’re not still receiving it.

It’s important to check because if you continue to claim while no longer eligible, you will be forced to pay additional tax at the end of the tax year.

If you are receiving the working from home tax rebate when you shouldn’t, get in touch with HMRC to get your tax code changed.

Who is eligible for tax relief for the last two tax years?

Not everyone is eligible to claim for the last two tax years so you need to check first that you:

• Were told to work from home by your employer. You cannot claim tax relief if you chose to work from home
• Have had to pay higher costs related to working from home (but you don’t need to show evidence of this)
• Must not be receiving expenses directly from your employer to cover the extra costs of working from home

Do you pay tax by self-assessment? You can still claim the tax rebate but you need to apply for it in your tax return rather than through HMRC’s online portal.

If you are still unsure whether you are eligible, there is a government tool that can help you find out.

NOTE: If you are self-employed, you can’t claim because you work for yourself. However, you can claim expenses on your tax return.

If you are new to tax returns, check out our guide to self-assessment .

What if the rebate doesn’t cover my extra needs?

If the sum provided does not come close to the extra costs that you have incurred, you can apply for relief on higher sums.

There are two options:

• If you complete a self-assessment form each year simply add the claim to that
• Fill in the P87 form that allows workers to claim back expenses up to a maximum of £2,500

HMRC says that additional costs include things such as:

• Metered water bills
• Home contents insurance
• Business calls
• New broadband connection

They do not include costs that would stay the same whether you were working at home or in an office, such as rent, council tax, or your chocolate digestive habit.

You will need:

• Your employer’s name and PAYE reference (which you can find on your payslip or P60)
• Your job title
• Receipts (to provide evidence of these extra costs)

You won’t get back the full cost of the extra expenses, only tax relief on the total. For example: if you have spent £500 on extra costs, as a basic-rate taxpayer, you will see your net wages increase by 20% or £100.

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Working from home tax relief claims may still be possible for 2022/23

Published: 18 Jan 2023 Update History

Two relaxations were introduced as a result of the COVID-19 pandemic lockdowns to allow millions of employees to claim tax relief for the costs of working from home during the 2020/21 and 2021/22 tax years. These were:

• the relaxation of the strict eligibility requirements; and
• allowing relief to be claimed for the full year, even if there was a full or partial return to working at the employer’s location during the tax year.

From the current tax year 2022/23 onwards, employees who are eligible can still make a claim for tax relief for working from home. The claim can be made in self assessment (SA) returns, online , or on a paper P87 form .

The amount that can be claimed is £6 per week (£26 per calendar month), or actual evidenced amounts incurred on electricity and gas relating to the work area and business phone calls, as a deduction against earnings in respect of the weeks worked from home. A claim for the full tax year is no longer automatic.

Another key difference from 6 April 2022 for employees in England and other parts of the UK that did not continue COVID-19 working from home restrictions into 2022/23, is that the very strict eligibility requirements of s336, Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) apply.

These tests are summarised in HMRC’s guidance, at: 

• Claim tax relief for your job expenses - working from home
• EIM32760: Other expenses: home: working from home
• EIM32815: Other expenses: home: household expenses

For example, employees are not eligible to claim a deduction if they have chosen to work at home. Also, even if the contract allows the employee to work from home for some, or all of the time, no deduction can be claimed if the employer has appropriate facilities to allow the employee to work at the employer’s premises. An exception to this is where the nature of the job requires the employee to live so far from the employer’s premises that it is unreasonable to expect them to travel to those premises on a daily basis.

If making a claim for actual expenditure, a deduction is not allowed if the amounts are not wholly incurred in the performance of the employment (eg, costs of broadband that is used privately as well as for the employment).

It is not too late for employees to make a claim for 2020/21 and 2021/22. SA returns that have been submitted can be amended within twelve months of the filing deadline. HMRC’s portal allows backdated claims for up to four years.

• agents cannot file claims online, but can submit a paper form;
• claims cannot be made by phone;
• employees in SA must claim via their SA tax returns, and
• a claim cannot be made where the allowance (or reimbursement of evidenced amounts incurred) is paid to the employee by their employer, which would be tax-free under s316A, ITEPA 2003 , see HMRC’s guidance Expenses & benefits: homeworking .

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Working from home tax relief guide for the uk.

Over the past 4 years, many workers in the UK experienced changes in how they interact with their workplace. Many had to work from home and experienced increases in household costs as a result. The HMRC recognized these increased work-related costs and changed the work from home (WFH) tax relief rules. This guide explains those changes and helps simplify making a tax relief claim for work-related household costs.

Key Takeaways

• You cannot claim WFH tax relief if your employer reimburses you for your expenses.
• You can claim a set weekly amount or the exact amount of costs above the weekly amount.
• You can submit your claim online or by post in most circumstances.
• You cannot claim relief if you choose to work from home.
• You can claim relief this year and the 4 previous tax years.

Table of Contents

What is WFH Tax Relief?

• Who is Eligible for Work from Home Tax Relief?
• What Can You Claim When Working from Home?
• How To Claim Tax Relief for Working From Home

How Much Tax Relief Can I Get for Working From Home?

What is the deadline to apply for wfh tax relief, can i still claim for working from home tax relief, streamline your tax preparation with freshbooks.

The HMRC working from home (WFH) tax relief applies to eligible claimants who work from home for some or all of the tax year. It is a government initiative aimed at assisting workers who experience an increase in costs as a result of working remotely during COVID-19. The tax relief for working from home is limited to items and expenses you pay for, including home office supplies, gas, and electricity. You cannot claim expenses your employer reimburses you for.

Who is Eligible for Work From Home Tax Relief?

The UK working from home tax relief applies to workers who work from home for part or all of the week. It can offset costs for workers who are required to work from home.

The tax relief only applies if working from home is a requirement of your employment. You are eligible to claim tax relief if your employer does not have a company office or if your job requires you to live far away from the office and a daily commute is not feasible. 

You are not eligible for HMRC tax relief if: 

• You work from home because of COVID-19 
• You choose to work from home for part or all of the week because your employment contract allows you
• Your employer has a local office, but sometimes occupancy limits prevent you from utilising it regularly

Work from home relief does not apply if you are self-employed.

What Can You Claim When Working from Home? 

You can claim a basic set amount or itemised values for work-related expenses. The set amount reflects the increased basic costs like heat, electricity, and your home phone for business-related calls. 

Applicable expenses in an itemised claim include:

• Repairing or replacing small tools you need to do your job (like scissors or a printer)
• Cleaning or repairing a uniform or specialist clothing required for your job
• Travel to and from work via transit, vehicle or bike if it is a temporary workplace
• Work-related travel and overnight expenses
• Professional membership fees and subscriptions, if these fees are required for you to be able to do your job
• Equipment that will last less than 2 years if you use it for work and there’s no significant private use
• Substantial equipment required for your job, such as computers

You cannot claim tax relief for things that you use for both private and business use, such as rent or your broadband connection. You also cannot claim tax relief for:

• The initial cost of clothing purchases
• Repair or cleaning of your everyday clothing
• Laundering costs of your uniform or specialist clothing if your employer provides a laundering service that you choose not to use
• Personal protective equipment (PPE)
• Professional fees and subscriptions reimbursed by your employer
• Cars, bicycles, or motorcycles

How To Claim Tax Relief for Working From Home 

Claiming working from home tax relief as a paid employee follows a similar procedure as any business expense. There are some limitations to eligibility—you can find out if you are eligible for relief using the government gateway online system . 

The rules changed for claiming household expenses for working from home as of 6 April 2022. 

You can only now claim working from home, if:

• Under government restrictions, you must work from home
• There is no suitable workplace at your employer’s premises for you to work
• The distance to and from your employer’s premises is unreasonable to travel daily

If you are eligible, you can claim relief online or by post using form P87 . The simplest and fastest way to submit your claim for expense relief is to use the government gateway ID system. You cannot use the online system if:

• You claim working from home expenses over £2,500
• You make claims for more than 5 jobs
• You complete the Self Assessment tax return

If you submit your tax refund using the complete Self Assessment tax return, you must file through your tax return. If you claim a tax rebate from more than 5 jobs, you must submit your claim by post.

You cannot claim tax rebate on any expenses your employer has reimbursed you for.

How is the Tax Relief Paid? 

When your claim is approved, you receive your expense relief through a change in your tax code. Your new tax code will include your working from home allowance. You won’t need to make a new claim in future years, and you’ll pay less tax on your salary for the following tax year.

Notify the HMRC if you stop working from home to eliminate end-of-year surprises. They will adjust your tax code so you don’t pay taxes at the end of the year. 

Claiming tax relief for extra expenses can all seem confusing and perhaps a little daunting. Learn how FreshBooks can take the pain out of tax preparation with this short video.

You can submit a claim for the set weekly amount or the exact amount of the additional costs above the weekly amount.

As of 6 April 2020, the flat rate is £6 per week. The set amount for claims before 5 April 2020 is £4. You do not need to provide receipts if you claim the basic amount.

The amount of relief you receive depends on your tax rate. Basic rate taxpayers get relief from tax on 20% of £6 or £1.20 in tax relief per week for your household expenses. Higher rate taxpayers get 40% of £6 per week.

If this is your first year working from home, you should keep all logs and receipts for your increased house costs. Moreover, you can also log and organise your expense using the FreshBooks expense and receipt tracking feature. These costs can add up quickly. It is easier to accurately calculate your claim if you have the information organised before tax time.

If the total amount is more than £6 per week, you can claim the extra costs above the £6 limit. You must provide detailed records and receipts to make a claim. 

You do not need to claim relief every year if your first claim is approved. Your tax code is adjusted to reflect your work from home status. You only need to make a new claim in future tax years if your work situation changes.

The deadline for the current tax year is 5 April the following year. However, the HMRC will accept backdated claims. You can make a claim for relief for working from home for this tax year and the previous 4 tax years. For example, the deadline to submit a claim for the 2020/2021 tax year is 5 April 2025. The deadline for the 2021/2022 tax year is 5 April 2026. 

You can still submit a claim if your household costs increased over the last 4 years. However, the HMRC updated the eligibility requirements for the 2023/2024 tax year. You cannot claim tax relief if you could go to your employer’s work premises but choose to work from home.

The HMRC relaxed the eligibility criteria during the tax years of 2020/2021 and 2021/2022 because workers were mandated to work from home and experienced the burden of the associated additional household costs. Previous tax years had stricter rules regarding tax rebates for extra costs.

Does My Tax Code Change If I Work From Home?

Your tax code and therefore taxable income will change if you work from home in the UK. A basic rate taxpayer may see a change in their overall income tax relief.

If your job requires you to work then you are entitled to claim tax relief for additional household costs. To cover expenses, you receive a decrease in taxes paid through your salary.

Working from home as a requirement of your job is not the same as being self-employed and operating a home-based business.

Working from home tax relief is one way the HMRC is helping workers offset the increasing household costs associated with having to work from home. By submitting your claim, you can have less tax taken off your salary, leaving more for your day-to-day expenses.

Ensure you are getting the most out of your tax return. FreshBooks accounting software can take the guesswork out of tax preparation and filing. Try FreshBooks free and sign up today to see how easy tax filing can be!

Navigating the rules and regulations of tax relief can seem daunting, but it doesn’t have to be. FreshBooks offers guides for many tax relief topics. Learn more about Business Tax Write-Offs for Small Business and start getting the most out of your money today.

More Useful Resources

• Sole Trader Tax Guide
• Allowable Expenses & Disallowable Expenses
• Self Employed Expenses
• Marriage Allowance
• Tax On Rental Income

Levon Kokhlikyan, ACCA

About the author

Levon Kokhlikyan is a Finance Manager and accountant with 18 years of experience in managerial accounting and consolidations. He has a proven track record of success in cost accounting, analyzing financial data, and implementing effective processes. He holds an ACCA accreditation and a bachelor’s degree in social science from Yerevan State University.

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Working from home 2024: HMRC tax relief explained

Many of us had to shift gears and work from home at some point throughout the pandemic. In fact, the latest numbers show that 5.6 million people went from the office to their home office (or kitchen table) at some point during 2020. Surprisingly though, only around half made applications for the working from home tax relief. 

At a rate of £6 per week, HMRC working from home allowance might not sound like much. But if you were required to work from home for even just one day during the lockdowns, you could be due for a nice chunk of change in the form of tax relief.

We get it – your employer and HMRC usually handle the tax codes, benefits and financial stuff. It’s normally out of your hands and this sounds like more effort than it’s worth. 

But we’re here to show you just how simple and quick it is to make a claim if you’ve been working from home, and get the working from home tax relief that’s due. 

What is HMRC working from home allowance? 

How to claim the working from home tax relief 2023/24, give your company a friendly nudge.

Through the working from home allowance 2023/24, HMRC offers compensation, in the form of tax relief, for the costs associated with remote employment. You know, all the extra gas and electric bills associated with running a home office, for example.

Effectively, the government reimburses the cost in the form of a tax credit for working from home. 

The money is taken off your current tax bill that’s paid every month, meaning that you’ll keep slightly more of your salary. But if you wait to claim until the end of the tax year, you may receive a straight-up refund in the form of a cheque.

Working from home tax relief backdated

Most of us were required (to put it lightly) to begin remote working in March 2020, which means we’re now onto the fourth year of possible claims. If you missed out on claiming the tax rebate working from home in previous tax years, don’t worry: HMRC allows you to backdate claims. Phew!

Applying for HMRC working from home tax relief 2022-23 and the year before that (since most of us became eligible for WFH tax relief in 2020) could mean you are eligible for up to £280 in total. And just in case you’ve been working from home prior to that, it's good to know that they allow backdating for up to four years. 

As well as Covid-related changes to the working from home allowance, HMRC brought in other measures such as furlough through the job retention scheme. But this all ceased in October 2021. So, the work from home allowance is now one of the only measures still in place that you can make the most of.

Now that there is no longer a government requirement to work from home, like the lockdown, only a small percentage of the UK’s workforce is actually eligible to apply for tax relief in the 2023-24 tax year. But this doesn’t mean you should miss out on previous years. 

Luckily, the deadline has not yet passed to make a backdated claim for working from home tax relief 2021. HMRC has confirmed that workers have until April 2025 to claim for the tax year ending in 2021, and 2026 for this current year. 

To apply for working from home tax relief, you need to follow the steps on the government’s website. There are two different times to claim: at the end of the tax year or during the tax year. 

Here’s how to claim working from home tax relief 2023/24:

• Check you are eligible by answering the questions on the government portal
• Create a government gateway ID. To do this, you’ll need your national insurance number, alongside one of the following: recent payslip, P60 or passport
• After signing in, select the date that you began working from home (note that you can put a date from a previous year and receive the tax relief together)
• Simply wait for your cheque to arrive from HMRC

Another important thing to note: HMRC allows you to claim tax relief on other expenses and extra costs too, such as business travel . But they do expect receipts and documentation. In order to apply, fill out a P87 working from home form.

Questions? We’ve got you covered. Here are some of the most common questions regarding tax relief for remote workers.

Can I claim working from home tax relief 2023/24 tax year?

Short answer: Yes, but beware that the eligibility criteria has changed. Even if you were able to claim during 2021, there is no guarantee that you will qualify in 2023/24. 

Who is eligible for tax relief?

The main purpose of regulation around this tax relief is to prevent double claims. This means that if your employer has already paid for or reimbursed the extra costs of working from home, applying for tax relief would be slightly cheeky on top. 

Moreover, you cannot have chosen to work from home, it must be a requirement. For example, if you are required under government restrictions, or there are no facilities available for you to complete your work at the office. 

This applies to those claiming working from home tax relief Scotland, and working from home tax relief Wales, along with those in Northern Ireland. Unfortunately, working from home tax relief Ireland is totally different since it is not part of the UK. 

Important: You don't need to work from home full time. Even one day is enough to claim for the whole year, as long as your employer required it, and it wasn't just a choice.

What can you claim the tax relief for?

As part of HMRC working from home scheme, the compensation can be claimed for extra household costs that have occurred as a result of your work. While this includes the electricity and gas bills associated with using your home as an office, tax relief also exists with regard to business phone calls, for example. 

Remember that HMRC specifies that you cannot apply for expenses that affect your private life, even if there is a crossover. Unfortunately, this means no claiming for meal deals. 

How much working from home tax relief to expect?

The amount of tax relief you can receive is proportionate to the tax you pay. 

Basic rate taxpayers receive 20% of the £6 per week figure, which is £1.20. Across one year, this adds to £62.40.  

Higher rate taxpayers also receive their equivalent tax bracket back in the form of tax relief, which is 40%. This is £2.40 per week or almost £125 per year. Finally, those who earn above £100,000 and pay an additional rate tax of 45%, are eligible for £2.70 per week, which leads to £140.40 per year.  

What if it doesn’t cover the cost?

Due to the sheer number of claims processed over the past two years, it would be virtually impossible for HMRC to deliver tax relief on a case-by-case basis. This means that for most of us, £6 per week is a hard limit. 

Those who would like to cover extra needs, such as money you’ve spent on uniforms, tools, or professional subscriptions have the option to do so. To do this, fill out a P87 working from home form. 

In this case, evidence like receipts and other documentation is required. While keeping track of all your paper receipts may feel outdated (not to mention bad for the environment), it’s what HMRC requires to process your transactions. 

Usually, it’s the finance team at your organisation that handles employee expense claims, receipt reconciliation and reimbursements. But if this isn’t the first time that you’ve found yourself picking up the slack with expense claims, it might be time to nudge your company into the 21st century. 

Never lose a receipt again

We know just how difficult it is to try and file away all of your receipts, let alone how time-consuming it is to organise them when it comes to making a claim. But why should that mean that you miss out on the tax relief that you are owed? 

With Pleo’s receipt scanner , you’ll get a notification on your phone as soon as the transaction goes through the till. Simply scan your receipt there and then in order to lock it in and when you’re ready to make a claim, watch your organisational worries disappear. 

And when your cheque comes in, go ahead and order that ergo chair you’ve had your eye on.

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Working From Home Tax Relief Guide

Employed and have to work from home? You can normally claim tax relief on some of your household expenses.

Working from home tax relief is approved and paid by HMRC and is sometimes known as the working from home allowance.

The WFH allowance is aimed at employees who bear extra expenses due to home based work for example work phone calls and gas and electricity costs incurred in your workspace.

To keep things simple HMRC have allowed a weekly flat rate so you don’t need to provide detailed evidence.

Anyone that hasn’t claimed for the working from home allowance when they were eligible can backdate their claim for four tax years which usually results in a WFH tax rebate.

No matter what job, our working from home tax rebate guide helps you to find out your eligibility and how to claim back your WFH tax rebate.

Can I claim for working from home tax relief?

To be eligible to claim tax relief for working from home it’s got to be a requirement of your job and HMRC makes it very clear that choosing to work from home is not acceptable criteria.

HMRC states that one of the following WFH rules must also apply for you to be eligible:

• Appropriate facilities are not available for you to work at your employer’s premises.
• On a daily basis your job requires you to travel an unreasonable distance to your employers premises.
• Under government restrictions you have to to work from home.

HMRC has a basic online tool to help with finding out if you qualify for the WFH allowance .

Having a contract of employment or employer correspondence confirming your working from home requirements would be helpful if HMRC ask for evidence.

Working from home tax rebate and Covid-19

Because of Covid-19 HMRC allowed people to claim for working from home in the 19/20 and 20/21 tax years if you worked for some or all of the time at home.

From the 6th April 2022 HMRC has reverted back to their pre-covid rules of you needing to work from home and not just working from home as a choice.

How much is the working from home tax relief worth?

The agreed working from home tax relief rate is £6 per week . This is the agreed rate without having to provide receipts.

The figure you will receive back as a tax rebate will depend on the rate of tax you pay.

• Basic rate tax payers will get £1.20 per week or £62.40 per tax year .
• Higher rate tax payers will get £2.40 per week or £124.80 per tax year .
• Additional rate taxpayers will get £2.70 per week or £140.40 per tax year .

You can make a claim for the exact amount of costs incurred. If you need to claim more than the agreed rates you’ll need evidence that shows the extra cost you incurred from working at home.

I volunteer to work at home, can I claim working from home allowance?

If you’ve made a ‘homeworking arrangement’ with your employer, and work at home on a regular basis you should still be able to make a claim if:

• There’s a recognisable pattern for example three days at home and two days at your normal place of work.
• Any work you do at home is part of your employment.

To claim work from home tax relief in this situation your employer must make a contribution towards your expenses.

How do I claim a tax rebate for working at home?

To process your working from home tax rebate claim it’s best to follow the instructions provided by HMRC (the tax office) on their website .

A form P87 will be required which can be submitted to the tax office online or by printing off the form and sending it by post.

If you are claiming a working from home tax rebate from past tax years you can include all years on the same P87 claim form.

There is a different process if you are self employed and claiming will involve your self assessment tax return.

Working from home tax rebate P800

HMRC will send you a form P800 if you have claimed the working from home allowance from a previous tax year.

The P800 explains in figures how much you have been awarded and total tax rebate you are due in each tax year.

In addition the P800 guides you to claim any repayment online through your personal tax account .

Working from home tax relief and tax returns

If you complete a self assessment tax return you have to include the working from home allowance in the correct box on your tax returns employment page.

Working from home tax code

After your working from home claim has been processed you will receive a new tax code from the tax office which will include your working from home allowance.

HMRC increases your personal allowance by the value of the working from home allowance which means you pay less tax.

The point of putting the allowance into your tax code is so you don’t need to make another claim in the future.

Your new tax code will increase your tax free allowance meaning you will pay less tax each time you are paid.

If you stop working from home you should tell HMRC so they can take the allowance out of your code so you don’t underpay tax.

What else can I claim tax relief on?

You’re allowed to claim tax relief on what you have actually spent because you have been working from home but you will need to provide evidence like gas, electricity and phone bills.

Working from home tax relief isn’t allowed on household expenses you would be paying for anyway, such as rent or mortgage payments.

And it doesn’t cover expenses that relate to both business and private use, like broadband and telephone line rental.

Our free income tax guides are available to learn about other tax reliefs that you might be entitled to which can be included with your WFH tax rebate claim.

Tax Guides for Families and Home

Employed and have to work from home? You can normally claim tax relief on some of your household expenses...

As of April 6th 2015, couples have been able to register for the new Marriage Tax Allowance also known as the married couples allowance...

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Working from home: could you be eligible for up to £125 in tax relief?

HMRC gives the option to claim online without receipts as Covid keeps more away from offices

Millions of people who have spent the last few months working at their kitchen tables are being encouraged to apply for tax relief using an online form that could return them up to £125.

At the beginning of October, HM Revenue and Customs (HMRC) launched an online portal offering employees a hassle-free way to claim the relief without the need to provide receipts or to make complicated calculations.

The government said this week that just under 55,000 people have so far applied online, which suggests millions more who have been told to work at home could still make a claim.

The tax relief is offered to workers provided they were told by the employer, rather than chose, to work from home – and provided they have not received home expenses payments directly from their company.

HMRC’s interim director general of customer services, Karl Khan, says: “We want everyone to get the money that they are entitled to, so we’ve made the online service as easy to use as we can – it takes just a few minutes to make a claim.”

He says once the application has been approved, the portal will adjust an individual’s tax code for the 2020-21 tax year. The employee will receive the tax relief directly through their salary and will continue to receive the adjustment until March 2021.

What’s it worth?

If you go for the easy, no-receipts-required route, your claim will be based on the assumption that you have incurred costs of £6 a week while working from home and you will get back the tax that you would have paid on that sum. For basic rate taxpayers – those earning between £12,500 and £50,000 a year – the relief is worth 20% of the £6: £1.20 a week. Higher rate taxpayers (those earning £50,000-plus) can claim 40% or £2.40 a week.

If you end up working the whole tax year at home – from 6 April 2020 onwards, you will be able to reduce next year’s tax bill by £62.40 or £124.80 respectively. Many people may want to make the claim at the point they go back to work, or if the worst happens at the end of the tax year next April.

You can check if you are eligible through the Gov.uk portal .

The advantage of taking that route is that it is easy to apply and you don’t have to dig out any paperwork. If you work at home four days a week and still go into the office on the fifth, you can apply as if you only work at home. You don’t get a cash payment; your pay packet simply rises a little as you pay slightly less tax.

What if my bills are much higher?

If the sums above do not come close to the extra expenses that you have incurred, you can apply for relief on higher sums – although it’s more complicated, says Suzanne Briggs, a partner at the tax accountancy firm, Blick Rothenberg.

“Employees who have incurred significantly higher costs have two options,” she says. “Those who complete a self-assessment form each year simply add the claim to that. If you are lucky enough not to have to fill in an annual return, HMRC has a form – the P87 – that allows employees to claim back expenses up to a maximum of £2,500.”

You will need your employer’s name and PAYE reference (which you can find on your payslip or P60), and your job title.

The HMRC website says that additional costs include things such as “heating, metered water bills, home contents insurance, business calls or a new broadband connection”. They do not include costs that would stay the same whether you were working at home or in an office, such as mortgage interest, rent or council tax.

In reality, Briggs says, employees can only claim the extra heating and electricity costs for the proportion of the house they occupy while working at home, or things such as telephone calls made for business reasons.

Most workers, she says, won’t be able to claim the cost of their broadband as HMRC assumes that households would have this anyway. However, you can register the cost of having to buy a laptop, or an office chair that you only use for work purposes.

Again, you won’t get back the full cost of the extra expenses, only tax relief on the total. So if you can show £500 of extra costs, as a basic rate taxpayer you will see your net wages increase by 20% or £100 – or £200 for higher rate taxpayers.

“Be aware you will have to demonstrate these extra costs and back them up with receipts. Most people will probably decide that the £6 a week, no-receipt claim is the easier option,” she says.

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How can I claim tax working from home?

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If you've had to work from home over the last few years, you might have seen an increase in your household expenses caused by being at home for an additional 8 hours a day. Luckily, HM Revenue & Customs (HMRC) has tax relief for this to ensure you aren't left footing the entire bill by yourself.

The pandemic caused a massive spike in the number of people forced to work from home. Although the tax relief has always been there, many more people are now eligible to make a claim.

While the government mandate to work from home is no longer in place, many businesses have adopted a flexible working schedule. They've done this by hiring fully remote workers or offering a hybrid solution. As such, you may still be able to claim tax relief for the current tax year, as well as backdate claims for previous years.

Therefore in this article, we'll explain what working from home tax relief is, how to determine if you're eligible, and how to claim it. Let's dive in.

Claiming tax relief for working from home is a straightforward process. First, head to the government's tax relief portal where you can check to see if you are eligible to claim. Here you will be asked a few questions, such as if you're claiming for just this tax year or also for previous years. You will then be asked to log in to your Government Gateway User ID. If you have an account, simply log in. If not, you will have to create one. To create an account, you will need either your National Insurance number, recent payslip, P60, or a valid UK passport on hand.

Once you have logged in using your Government Gateway ID, you will be directed to a page asking for the date on which you began working from home. Correctly outline the date you started working from home and ensure you select all the tax years you are claiming a tax rebate for. Click submit, and there you have it, you have successfully claimed tax relief for your extra costs.

What is work from home tax relief?

Once the pandemic hit and millions of Britons were told to work from home, it was a respite for many people. They not only saved on time commuting to their workplace, but they also saved on fuel costs from not having to drive or spending money on public transport tickets. Although this was a welcome change for many workers, their expenses at home increased.

Since they were spending a large part of their day at home, additional household costs such as gas bills, electricity bills, and metered water bills went up – in some cases more than they were paying to commute. To offset this increase, HMRC promoted the working from home tax relief. This allowed workers to claim tax relief on some of the increased costs.

What expenses can I claim tax relief on?

Essentially, you can claim tax relief on all extra costs related to your working area at home. This involves things such as electricity bills, gas, work-related phone calls, etc. You can't use work from home tax relief on general household expenses that you would be paying for anyway, like your rent or mortgage payments.

What about internet costs?

When it comes to the cost of your internet bill, it's not as straightforward. HMRC states there are two situations. The first is someone who already has an existing broadband subscription before starting a new – work from home – job. The second is someone who takes out a new broadband subscription after starting a new career where they are required to work from home.

You cannot claim tax relief for the first scenario. This is because HMRC does not view this as an additional expense; you had the subscription before your employment. Therefore, the cost does not change, regardless of whether you're working from home or not.

On the other hand, you can claim tax relief for the second scenario. This is because the broadband subscription is a new additional expense that you wouldn't have otherwise.

Can I get tax relief if I buy office equipment?

Generally speaking, HMRC will not allow you to claim tax relief on home office equipment such as desks, chairs, or a different computer screen. HMRC does not view this as an expense claim. Still, you may be able to claim it under capital allowances instead, which work differently.

This is because tax relief claims you make on work-related expenses must meet strict criteria. The costs must be wholly, exclusively, and necessary in the performance of your duties. Keeping this in mind, a desk or chair, for example, does not satisfy these criteria.

For instance, suppose you buy these items for your job. Under HMRC's eyes, these have been purchased to assist you in your job role or, in other words, have made working at home much more comfortable for you. This does not qualify as an expense you can claim tax relief on since it is not necessary to perform your work duties. It enables you to do your job, rather than being an expense incurred while doing your job. Sure, the desk and chair will help, but they aren't necessary.

On the other hand, items like paper or ink cartridges for your printer are viewed differently as these are things that are used to do your job. Suppose you need to print and post a letter to a client. The cost of the ink, paper, envelope, and stamp are expenses you have incurred whilst doing your job. If your employer does not reimburse you for the costs, you can claim tax relief on these expenses.

How much tax relief can I claim?

There are two main ways to calculate how much tax relief you can claim. You can claim tax relief at a flat rate of £6 per week (£4 per week if you're claiming up to 5 April 2020), or you can choose to claim tax on the exact costs you have incurred.

Most people tend to go with the flat rate since it's much less hassle, and there's no need to show receipts for your costs. How much you get from the flat rate will depend on what rate taxpayer you are. A basic rate taxpayer can claim 20% of £6, which will total £1.20 per week, or £62.40 per year. Higher rate taxpayers can claim 40% of £6, which will total £2.40 per week, or £124.80 per year. Additional rate taxpayers can claim 45% of £6, which will total £2.70 per week, or £140.40 per year.

HMRC will allow you to backdate your claims up to four years, and you could end up with a sizeable tax rebate in the region of a few hundred pounds.

What if the HMRC's flat-rate tax relief doesn't cover my needs?

If you find that HMRC's estimate of £6 per week is not sufficient and you actually spent much more, you are able to apply for tax relief on a higher sum. There are two ways to go about doing this. The first option is straightforward – if you complete a Self Assessment form every year, then you can add your tax relief claim to that.

The second option will take a little longer. To proceed with this method, you will have to fill in a P87 form which can be done online on the government's website. A P87 form will enable you to claim expenses up to £2,500 and can include things such as heating, water bills, new broadband connection, etc. In order to fill in a P87 form, you will need the name of your employer and PAYE reference. You will also need to provide your job title and, most importantly, receipts to show proof of your extra expenses. If you don't have evidence to prove your extra costs, you won't be able to claim tax relief on them.

Can I claim tax relief if I'm not required to work from home?

If you're in a work arrangement where you're not required to work from home, but you are permitted to do so, this would be called a home working arrangement and you should be able to claim tax relief. For instance, if you work two days in the office and three days at home, there is a pattern to working from home and thus qualifies as a home working arrangement. Of course, such an arrangement would have to be agreed upon with your employer beforehand.

Your home working arrangement must also be in writing. This can be noted in your contract, or your employer can provide a letter confirming you are working from home as part of your duty. It's important to note that if you work from home informally or irregularly, you won't be able to claim tax relief on your expenses.

What if my employer reimburses me for my expenses?

If you incur expenses from working from home and your employer is reimbursing you for these costs, you cannot claim further tax relief on them. HMRC is very clear about the fact that in order to qualify for tax relief, your expenses should be borne by yourself.

Instead of claiming just the tax relief, some employers will compensate you for the total costs. This is why it's recommended to ask your employer for reimbursement first since it could work out much better for you financially.

What if I have unreimbursed expenses and I am on minimum wage?

Let's say you are working from home and your employer does not reimburse your expenses. Suppose you are earning minimum wage or slightly higher. In that case, you will be protected by national minimum wage rules to ensure your salary does not go below the minimum threshold. Essentially, if your expenses result in your effective hourly wage going below minimum wage, your employer must reimburse you up to the level where you reach the national minimum wage again.

It's also important to note that if you are on Universal Credit and incur expenses that your employer does not reimburse, then make sure to notify HMRC. They may be able to lower your earned income for Universal Credit, meaning you will end up with a higher award than usual.

What is the deadline for claiming tax relief for working from home?

Tax relief claims for working from home can be backdated, meaning you can claim for up to four years back. Most people reading this article will only need to claim as far back as 1 January 2020, right before the pandemic began, since this is when working from home became prevalent. But it's nice knowing that you have the option to claim further back if it applies to you.

To put this into a practical sense, if you are claiming tax relief for the 2020/21 tax year, you have until 5 April 2025 to do so, and if you are claiming for the 2021/22 tax year, you will be able to claim until 5 April 2026.

How is the tax relief paid?

When an employee makes a successful tax relief claim for working from home, HMRC can issue the tax refund as a cheque. Since you can backdate a claim as far back as four years, if a claim has been made for more than one year, you can expect to receive a lump sum payment instead of multiple cheques.

Alternatively, HMRC will adjust your tax code, meaning you will receive the tax refund directly through your wages.

Claiming tax relief for working from home is an easy process. Simply log into the tax relief portal on the government website, and you'll be able to raise a claim within 10 minutes. As long as you are, or have been, required to work from home, your claim should be successful.

Most people tend to use the flat rate as it covers the extra household costs without having to faff around with receipts and proof. But make sure your employer isn't reimbursing you for these costs since if they are, you won't be eligible to claim tax relief.

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Working from Home Tax Relief – what you need to know

Homeworking has become the norm for millions of people following the pandemic. But the rules on claiming tax relief for additional household costs you incur when working from home have changed. So read on to find out if you’re still eligible to claim up to £140 per year and whether can you still backdate your claim.

What is the Working from Home Allowance?

The government introduced working from home tax relief in 2003 to allow for anyone working from home to claim back some tax to help cover the increased household costs associated. This used to add up to a £4 a week tax-free sum.

However, because the pandemic forced millions more people to work from home, the government upped the amount to £6 a week. And the rules were also temporarily changed so you didn’t need to prove that you worked from home regularly. Instead, it meant you could claim up to £140 per year even if you only worked from home for one day.

But with all covid-related financial measures now removed, millions of workers are now back in the office either full time or part time. And in response, HMRC has updated its guidance for the 2022-23 tax year and introduced criteria that makes it harder to get a tax rebate for working from home.

Working from home? See if a garden room could help you create the perfect home office.

Working from home tax relief: What has changed?

The eligibility criteria for the working from home tax rebate is different depending on which tax year you are claiming for.

For the 2020-2021 and 2021-2022 tax years you’ll need to meet the following criteria to be eligible for working from home tax relief. You can claim for these tax years if:

• Your employer told you to work from home.
• Your household costs increased because of working from home.
• And your employer did not pay you expenses to cover the extra costs associated with working from home.

You can backdate claims for the working from home allowance, so there is still time to claim for both the 2020-21 tax year and the 2021-22 tax year.

However for the 2022 – 2023 tax year the working from home tax relief eligibility rules have changed. The new rules state you can’t claim tax relief if you ‘choose to work from home’. This includes if your contract lets you work from home some or all of the time, if you work from home because of Covid or if your employer has an office, but you cannot go there sometimes because it’s full.

But some people will still be able to make a claim with the HMRC working from home allowance applying if your job requires you to live far away from your office. Or if your employer doesn’t have an office.

You can’t claim working from home tax relief if you are self-employed . Instead, though you can include some expenses on your tax return.

Need an independent financial adviser or tax advice? Find a local adviser and book your free initial consultation through our partners at Unbiased. 

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How to apply for the working from home allowance

HMRC have set up a specific online portal where you can claim working from home tax relief. You can find it at www.gov.uk/tax-relief-for-employees/working-at-home .

The portal starts off by asking you a series of question to check you are eligible for the working from home allowance. And it states clearly that different eligibility criteria apply to different tax years.

After that you will need your Government Gateway user ID and password to make your claim. If you don’t already have a user ID, it takes a few minutes to create one.

Once you’ve logged in, you need to give the date of when you started working from home. If this was the start of the first lockdown back in 2020, the date will be 23 March 2020. You can then claim the working from home tax allowance for the entire 2020-21 tax year plus the two weeks before. This is because the new tax year starts on 6 April, but lockdown started on 23 March. You can also claim for the 2021-22 tax year at the same time and the 2022-2023 tax year if applicable.

If you pay your tax via self-assessment, you can’t claim the working from home allowance through the portal. Instead, you’ll need to apply via your tax return.

How much tax relief can I claim?

The working from home allowance is designed to cover the extra costs you incur when you work from home rather than heading off to the office. It can be tricky working out exactly how much of your heating or electricity bill is associated with the time you were at your desk so there is essentially a flat rate of £6 a week you can claim.

You can get this payment in two ways:

• Your employer can pay it : You can get an extra £6 a week tax-free through your salary.
• You can claim tax relief on it from HMRC : If your employer won’t pay you the allowance, but you have or had extra unavoidable costs due to working from home, you can deduct the amount from your taxable income. You then claim tax relief on it from HMRC.

Tax relief on £6 a week adds up to:

• £1.20 a week for basic rate taxpayers, or £62.40 a year
• £2.40 a week for higher rate taxpayers, or £124.80 a year
• £2.70 a week for additional rate taxpayers, or £140.40 a year

If your home working costs add up to more than £6 a week you can claim tax relief for a larger amount. However, you will have to provide evidence to the taxman of what your costs were, such as receipts, bills or contracts. You must also prove these costs were directly connected to your employer’s requirement for you to work from home.

Need help with your tax return? Find an accountant and book your free initial consultation through our partners at Unbiased. 

What can I claim working from home tax relief for?

You can only claim for things to do with your work, such as:

• business phone calls
• gas and electricity for your work area

If you need an accountant to help with your tax return, our partners at Unbiased can match you with the right adviser .

Can I still make a backdated claim?

HMRC says it will continue to accept backdated claims for people who have not yet claimed stating that taxpayers will receive a ‘lump sum payment’ for any successful backdated claims. It also stated that taxpayers have until the 5 April 2025 to make claims for 2020-21 tax year, and until 5 April 2026 make claims for 2021-22.

If you want to make a backdated claim you can do this via HMRC’s Working from Home Allowance portal.

How will I get the money?

If you are claiming for 2022-2023 tax year HMRC will adjust your tax code, and you’ll receive the tax relief through your salary.

And tax experts are urging employees who have previously made a claim to check their PAYE tax codes because if HMRC has included the relief and you are no longer eligible then you could get a surprise tax bill.

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When will I get my tax rebate? How to claim 2023 rebate and if you are eligible

You may be eligible for a tax rebate if you’ve overpaid any tax or have yet to claim certain tax refunds during a financial year.

On occasion people are overcharged on their tax bill , there is a system in place for you to receive money back from HMRC.

You may be eligible for a tax rebate if you’ve overpaid any tax or have yet to claim certain tax refunds during a financial year .

You can get a refund on any taxable income you’ve paid taxes on, including:

• pay from your current or previous job;
• pension payments;
• income from a life or pension annuity;
• redundancy payment;
• self-assessment tax return;
• interest from savings or PPI;
• foreign income;
• UK income if you live abroad;
• job expenses, like working from home costs or clothing and tools for your job.

Reasons you may be owed a rebate include if you:

• were put on the wrong tax code, for example because HMRC had the wrong information about your income;
• finished one job, started a new one and were paid by both in the same month;
• started receiving a pension at work;
• received employment and support allowance or jobseeker’s allowance.

 You can claim in arrears of up to four years.

Here is everything you need to know about tax rebates, if you need to apply, and when you should receive one.

How do I claim a tax rebate?

You may have received a P800 letter informing you that you have paid too much tax, and are due a refund. If this is the case you can claim your money back on the government website here .

You will need to  create a Government Gateway user ID here  if you don’t already have one. 

If you have not received a P800, you can still claim a tax refund by contacting HMRC directly through its online portal or by calling 0300 200 3300 .

When will I receive my tax rebate?

You can use HMRC’s online checker to see when you are due a payment or response.

After applying for a rebate you should be sent the money within five working days. It will arrive in your account once your bank has processed the payment.

If you do not claim your refund online within 21 days, HMRC will send you a cheque. You will get this within six weeks of the date on your tax calculation letter.

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• Expenses and employee benefits

Don’t miss out on a tax refund for work expenses, HMRC urges

Thousands of taxpayers are claiming tax refunds for work-related expenses and HMRC is reminding them that they can claim directly through GOV.UK.

HM Revenue and Customs ( HMRC ) is reminding employed workers they can claim a refund on work-related expenses directly through GOV.UK.

More than 800,000 taxpayers claimed tax refunds for work expenses during the 2021 to 2022 tax year, but while the average claim was £125, over 70% of claimants missed out on getting the full amount they were due because they used an agent to make their claim instead of claiming directly with HMRC .

It is quick and easy to claim a tax refund directly through HMRC ’s online portal on GOV.UK, and the only way to guarantee receiving 100% of the repayment – with no small print and no middlemen taking a cut.

Victoria Atkins, Financial Secretary to The Treasury said:

Nobody should miss out on the full claim of a tax rebate – and by going straight to HMRC people can avoid being left out of pocket because of unscrupulous repayments agents. Thanks to our Spring Budget reforms if someone no longer wants an agent involved in their claim, they’ll be able to cancel it so any future rebates will go to the taxpayer in full.

Jonathan Athow, HMRC ’s Director General for Customer Strategy and Tax Design, said:

Every penny counts and we want to make sure employed workers are getting what they deserve – their hard-earned cash straight back into their pockets. To make a claim just search ‘employee tax relief’ on GOV.UK. It is the quickest way of getting a tax refund on your work-related expenses and ensures you get 100% of the money back.

Submitting a claim through HMRC ’s online portal is straightforward and takes about 15 minutes. Customers can use the handy online tool to check eligibility and a full list of work expenses they can claim including:

• uniforms and work clothing
• buying work-related equipment
• professional fees, union memberships, and subscriptions
• using their own vehicle for work travel (excluding journey from home to work)

Customers who already have a Government Gateway account can follow the step-by-step guidance to submit their claim. Those who need to set an account up can do so quickly and easily via GOV.UK .

For customers who are considering using a repayment agent, HMRC is reminding them to be aware that an agent always charges for services – in some cases up to 50% of the value of the claim. And while initially it may seem simpler, customers will need to supply the agent with the same information they could use to make the claim themselves using HMRC ’s free online portal.

It is important customers understand what they are signing up to. Before signing a contract with a repayment agent, they should research the company and always check the small print to ensure they understand what commission is being charged and how much of their tax refund they are likely to receive back.

Customers can find out more about how to make a work-related expense claim and what type of expense they can claim at GOV.UK .

Further information

HMRC ’s new video shows some examples of the work-related expenses customers can claim a tax refund for .

HMRC set out how it was changing how repayment agents can operate including:

• introducing legislation to change the way repayment agents are paid for their services,
• updating the standard for agents to better protect customers from the unscrupulous tactics used by some operators, and
• implementing a new registration process for repayment agents.

Updated standard for agents

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