How Employees Can Claim Tax Relief for Working from Home

Employees who are required to work from home and whose employer does not fully reimburse their additional household costs. This guide explains how to claim working-from-home tax relief from HMRC. It focuses on the claiming process, how relief is calculated, the evidence HMRC may request, and how far back claims can be made. If your employer does not reimburse your additional household costs, you may be able to claim tax relief directly from HMRC. However, relief is only available where strict conditions are met, and claims must be made within HMRC’s time limits. If you are required to work from home and your employer does not reimburse your additional costs, you may be able to claim working-from-home tax relief. Relief is normally based on a flat rate allowance of £6 per week. This is designed to cover additional household costs such as heating, electricity and internet usage. If your employer already pays you up to £6 per week to cover these costs, the payment is usually tax-free, and you do not need to make a claim.

When You Can Make a Claim

You may be able to claim working-from-home tax relief if:

• Your employer requires you to work from home.
• Your employer does not fully reimburse your additional household costs.
• You incur extra costs as a direct result of working from home.

If working from home is voluntary, tax relief is generally not available.

How Tax Relief Is Calculated

Tax relief is not a refund of the full amount. Instead, the relief is given at your marginal rate of Income Tax.

• A 20% taxpayer claiming £6 per week receives relief of approximately £1.20 per week.
• A 40% taxpayer receives relief of approximately £2.40 per week.

This means the total benefit depends on your tax band.

How to Claim from HMRC

HMRC Online Service

Employees who do not complete a Self Assessment tax return can usually claim working-from-home tax relief using HMRC’s online service. HMRC may adjust your tax code to provide the relief through your PAYE income.

Claiming Through Self Assessment

If you already submit a Self Assessment tax return, the claim can be included within your tax return for the relevant tax year. The relief is then calculated as part of your overall tax liability.

Backdating Claims

Claims for working-from-home tax relief can normally be backdated for up to 4 previous tax years. This means employees who were required to work from home in earlier years may still be able to submit a claim, provided the claim is made within HMRC’s deadlines.

Evidence HMRC May Request

Although the £6 weekly flat rate does not require detailed records of household costs, HMRC may still request evidence to support your claim. This may include confirmation that:

• Your employer required you to work from home.
• You incurred additional household costs.
• Your employer did not reimburse those costs.

Common Reasons Claims Are Refused

• Working from home was voluntary rather than required.
• The employer already reimbursed the costs.
• No additional household costs were incurred.
• The claim falls outside the four-year deadline.

Understanding the eligibility conditions before submitting a claim helps reduce the risk of rejected applications.

Real-World Application

An employee is required by their employer to work from home and does not receive reimbursement for additional household costs. The employee claims the £6 per week allowance through HMRC’s online service. HMRC adjusts the employee’s tax code so the relief is applied through PAYE.