Claim Tax Back: Working From Home Tax Relief UK

Oct 30, 2025 by SLV Team 48 views

Hey guys! Working from home has become the new normal for many of us in the UK. But did you know you might be able to claim tax relief for some of your expenses? That's right! The UK government offers a fantastic scheme that lets you reduce your tax bill if you've been working from home. Let's dive into everything you need to know about claiming tax relief for working from home.

What is Working From Home Tax Relief?

So, what exactly is this working from home tax relief all about? Well, it's a way for the government to help cover some of the extra costs you might incur when you're working from your humble abode. Think about it: you're using more electricity, your heating might be on longer, and you're probably using your home internet a lot more. All these things add up, and the government recognizes that. This tax relief, officially known as 'working from home allowance,' aims to ease the financial burden of these increased household expenses.

Eligibility Criteria:

You must have been required to work from home by your employer. This means that your employment contract stipulates that you are working from home, or your employer has no office for you. If you choose to work from home, you can't claim tax relief.
You must have incurred extra costs due to working from home. These costs should be related to the business, such as heating, electricity, internet, and phone use.
You must have worked from home for at least one day during the tax year. This means that even if you only worked from home occasionally, you may still be eligible for tax relief.

How Much Can You Claim?

There are two ways to claim tax relief for working from home:

The Flat Rate Method: This is the simplest way to claim. You can claim a flat rate of £6 per week (or £26 per month) without needing to provide evidence of your actual expenses. This works out to £312 per year. Your employer can include this in your wages, tax-free, or you can claim it directly from HMRC.
The Actual Costs Method: If your actual expenses are higher than the flat rate, you can claim the actual amount. However, you'll need to keep detailed records of all your expenses, such as utility bills and internet bills. You can only claim for the portion of the expenses that relate to your work.

Expenses You Can Claim:

Heating and lighting: You can claim for the portion of your heating and lighting bills that relate to your work area.
Internet and phone: You can claim for the cost of your internet and phone if you use them for work purposes.
Business equipment: You can claim for the cost of office supplies and equipment, such as printers, paper, and ink.
Insurance: If you need to increase your home insurance because you are working from home, you can claim for the additional cost.

Expenses You Can't Claim:

Mortgage payments or rent: You cannot claim for mortgage payments or rent, as these are considered personal expenses.
Council tax: You cannot claim for council tax, as this is also considered a personal expense.
Personal phone calls: You cannot claim for personal phone calls, as these are not related to your work.

Who Can Claim Tax Relief?

So, who's actually eligible for this sweet tax relief? Generally, if you're an employee and your employer requires you to work from home, you're likely in the running. This applies whether you're working from home full-time or just a few days a week. The key thing is that it needs to be a requirement from your employer, not just a personal preference. Self-employed individuals have a different set of rules, which we'll touch on later.

Employees:

If you're employed and your employer requires you to work from home, you can claim tax relief for the extra costs you've incurred. This applies whether you're working from home full-time or just a few days a week.

Self-Employed:

If you're self-employed, you can claim business expenses for the costs you've incurred while working from home. This includes expenses such as heating, lighting, internet, and phone use. You can only claim for the portion of the expenses that relate to your work.

Conditions to Meet:

Employer Requirement: The most important condition is that your employer must require you to work from home. If you choose to work from home voluntarily, you can't claim tax relief.
Additional Expenses: You must have incurred additional expenses as a result of working from home. This means that you should have spent more money on heating, electricity, internet, or phone use than you would have if you were working from the office.
Record Keeping: It's important to keep accurate records of your expenses, such as utility bills and internet bills. This will make it easier to claim the correct amount of tax relief.

How to Claim Your Tax Refund

Alright, let's get to the nitty-gritty of claiming your tax refund. There are a couple of ways to do this, depending on your situation. If your employer is already including the £6 per week in your wages, then you don't need to do anything extra. But if they're not, here's how you can claim it yourself.

Claiming Online:

Go to the GOV.UK website and search for 'Claim tax relief for your job expenses'. This will take you to the relevant page where you can start your claim.
You'll need a Government Gateway user ID and password to access the online service. If you don't have one, you can create one easily.
Fill in the online form with details of your employment, expenses, and the period you're claiming for.
Submit your claim, and HMRC will process it. This can take a few weeks, so be patient.

Claiming by Post:

Download form P87 from the GOV.UK website. This is the form you need to claim tax relief for employment expenses.
Fill in the form with details of your employment, expenses, and the period you're claiming for.
Send the form to HMRC at the address shown on the form. Make sure to include any supporting documents, such as utility bills and internet bills.
HMRC will process your claim, and this can take longer than claiming online.

What You'll Need:

National Insurance Number: You'll need your National Insurance number to complete your claim.
Employer Details: You'll need your employer's name and address, as well as your payroll number.
Expenses Information: If you're claiming for actual costs, you'll need to provide details of your expenses, such as utility bills and internet bills.
Bank Details: You'll need your bank details so that HMRC can pay your tax relief directly into your account.

Maximizing Your Claim

Want to make sure you're getting the most out of your tax relief claim? Here are a few tips to help you maximize your claim and ensure you're not leaving any money on the table.

Keep Accurate Records:

The golden rule of tax relief is to keep accurate records of all your expenses. This includes utility bills, internet bills, phone bills, and receipts for any office supplies or equipment you've purchased.
Create a spreadsheet or use a budgeting app to track your expenses. This will make it easier to claim the correct amount of tax relief.

Claim for All Eligible Expenses:

Make sure you're claiming for all the expenses you're entitled to. Don't just claim for the flat rate; if your actual expenses are higher, claim for the actual amount.
Check the list of eligible expenses on the GOV.UK website to ensure you're not missing anything.

Claim Every Year:

Remember to claim tax relief every year that you're eligible. Don't assume that because you claimed last year, you don't need to claim again this year.
The rules and regulations can change, so it's always best to check the GOV.UK website for the latest information.

Seek Professional Advice:

If you're unsure about anything, seek professional advice from a tax advisor or accountant. They can help you understand the rules and regulations and ensure you're claiming the correct amount of tax relief.

Common Mistakes to Avoid

Nobody's perfect, and it's easy to make mistakes when claiming tax relief. But don't worry, we've got you covered. Here are some common mistakes to avoid so you can ensure your claim goes smoothly.

Not Keeping Records:

One of the most common mistakes is not keeping accurate records of your expenses. This can make it difficult to claim the correct amount of tax relief.
Make sure you keep all your receipts and bills, and track your expenses in a spreadsheet or budgeting app.

Claiming for Ineligible Expenses:

Another common mistake is claiming for expenses that are not eligible for tax relief. This includes expenses such as mortgage payments, rent, and council tax.
Check the list of eligible expenses on the GOV.UK website to ensure you're only claiming for expenses you're entitled to.

Missing the Deadline:

Don't miss the deadline for claiming tax relief. The deadline for claiming tax relief for a particular tax year is usually the 31st of January following the end of the tax year.
Mark the deadline in your calendar and make sure you submit your claim before it passes.

Tax Relief for Self-Employed Individuals

For all you self-employed peeps out there, the rules are a bit different, but you can still claim for business expenses. Instead of claiming the flat rate, you'll need to calculate the actual costs and claim the portion that relates to your work.

Allowable Expenses:

Office Supplies: Stationery, printing, and postage.
Utilities: Portion of your electricity, gas, and water bills used for business.
Internet and Phone: Business-related internet and phone costs.
Rent or Mortgage Interest: A portion of your rent or mortgage interest if you use a part of your home exclusively for business.

How to Calculate the Business Use Portion:

Determine the area of your home used exclusively for business. Calculate this as a percentage of the total area of your home.
Apply that percentage to your total household expenses to determine the deductible amount.

Additional Resources

GOV.UK Website: The official source for information on claiming tax relief.
HMRC Helpline: Contact HMRC for assistance with your claim.
Tax Advisor: Seek professional advice from a tax advisor.

So there you have it! Claiming tax relief for working from home is a great way to save some money and ease the financial burden of increased household expenses. Just remember to keep accurate records, claim for all eligible expenses, and avoid common mistakes. Good luck, and happy claiming!