Working From Home Tax Relief: How to Claim in 2025/26

If you've been working from home, you could be eligible for valuable tax relief that many people miss. Whether you're self-employed or work for an employer, HMRC allows you to claim back some of the costs associated with using your home as a workspace.

The good news? You have two straightforward options: claim a simple flat rate of £6 per week with no receipts required, or calculate your actual costs for potentially bigger savings. Let's explore both methods so you can choose the one that maximises your tax relief.

The Two Ways to Claim Working From Home Tax Relief

HMRC gives you flexibility in how you claim home working expenses. Understanding both options helps you pick the method that puts more money back in your pocket.

Option 1: Simplified Expenses (£6 Per Week Flat Rate)

The simplified method is brilliantly straightforward: claim £6 per week (£312 per year) for every week you work from home at least 25 hours. You don't need to keep any receipts, calculate proportions, or track actual costs.

This flat rate is designed to cover your additional household costs including heating, electricity, water, and business phone calls. It's available whether you work from home one day a week or five days a week—the rate stays the same.

Who should use the flat rate?

• Anyone who values simplicity over potential savings
• People with low home running costs
• Those who don't want to maintain detailed records
• Individuals working from home just a few days per week

Option 2: Actual Costs Method

The actual costs method requires more effort but can deliver significantly higher tax relief. With this approach, you calculate the business proportion of your household bills and claim that amount.

You'll need to determine what percentage of your home is used for business and how much time you spend working there. Then apply this proportion to bills like:

• Heating and electricity
• Water rates
• Council tax (business use portion)
• Internet and broadband
• Landline telephone (business calls only)
• Building insurance
• Mortgage interest (self-employed only)
• Rent (self-employed only)

Who should use actual costs?

• Self-employed individuals with dedicated home offices
• People with high household bills (large homes, high energy costs)
• Anyone working from home full-time or most days
• Those comfortable maintaining detailed records

How to Calculate Your Business Proportion

Getting your calculation right is crucial for claiming actual costs. HMRC expects your figures to be reasonable and justifiable, so use this two-step approach:

Step 1: Calculate Your Space Proportion

Divide the area of your workspace by your home's total area. For example:

• Home office room: 10 square metres
• Total home size: 100 square metres
• Space proportion: 10%

If you use a room for both business and personal use (like a dining room), reduce the proportion accordingly. An office used 50% for business would be calculated as 5% of total space.

Step 2: Calculate Your Time Proportion

Consider how many hours per week your home is used for business versus personal use:

• Total weekly hours: 168 hours
• Business hours: 40 hours (8 hours × 5 days)
• Time proportion: 24% (40 ÷ 168)

Step 3: Apply Both Proportions

For most expenses, multiply your bills by both the space AND time proportion:

Example calculation:

• Annual electricity bill: £1,200
• Space proportion: 10%
• Time proportion: 24%
• Claimable amount: £1,200 × 10% × 24% = £28.80

For some expenses like internet, you might use just the time proportion if the whole house benefits from the service. HMRC allows reasonable approaches as long as you can justify your methodology.

What Counts as "Working From Home"?

Not everyone who occasionally checks emails at the kitchen table qualifies for home working tax relief. HMRC has specific requirements:

For employed workers: Your employer must require you to work from home regularly. If you choose to work from home for convenience when an office is available, you won't qualify. However, hybrid arrangements where you work from home on set days do count.

For self-employed individuals: You need to do substantive business work from home. This could include:

• Meeting clients at your home office
• Administrative work and bookkeeping
• Phone calls and emails to customers
• Planning and business development
• Creating products or delivering services

Simply storing some business paperwork at home isn't enough. You must use your home as a genuine workspace where regular business activities occur.

Self-Employed vs Employed: Different Rules Apply

The claiming process differs depending on your employment status.

Self-Employed Workers

If you're self-employed, claim home office expenses directly on your Self Assessment tax return. You'll reduce your taxable profit, which means:

• Less Income Tax to pay
• Lower Class 2 and Class 4 National Insurance contributions

Use the simplified £6/week rate or calculate actual costs—whichever gives you more relief. Include your claim in the "expenses" section under "use of home as office" on your tax return.

Important: If you claim a proportion of rent or mortgage interest, you may create a Capital Gains Tax liability when you sell your property. For most people, claiming just running costs (heating, electricity, water) avoids this issue whilst still providing valuable relief.

Employed Workers

Employees can claim tax relief through their tax code or Self Assessment. The relief is calculated as:

• £6 per week × basic rate tax (20%) = £62.40 per year, or
• £6 per week × higher rate tax (40%) = £124.80 per year, or
• £6 per week × additional rate tax (45%) = £140.40 per year

Note that employed individuals cannot usually claim actual costs unless these are substantial and you can demonstrate significant additional household expenses directly attributable to your employment.

To claim, either:

1. Contact HMRC to adjust your tax code (for ongoing relief)
2. Claim via Self Assessment if you submit a tax return
3. Use the government's online service for simple claims

How to Claim Through Self Assessment

Claiming working from home relief through Self Assessment is straightforward:

Step 1: Register for Self Assessment

If you're self-employed, you're likely already registered. Employed individuals only need to register if they have other reasons to complete a tax return (such as income over £100,000 or untaxed income over £2,500).

Step 2: Complete Your Tax Return

In the expenses section of your return:

• For simplified expenses: Enter £312 (or the weekly amount × weeks worked) under "use of home as office"
• For actual costs: Calculate your proportion of each bill and total them, then enter the sum

Step 3: Keep Records

HMRC can ask to see evidence up to six years later. Maintain:

• Copies of household bills
• Calculations showing your business proportion
• Records of weeks worked from home
• Room measurements and floor plans if using actual costs

Step 4: File Your Return

Submit your Self Assessment by the deadline:

• 31 October for paper returns
• 31 January for online returns

Calculation Examples: Which Method Saves More?

Let's compare both methods with realistic scenarios.

Example 1: Part-Time Home Worker

Sarah works from a spare bedroom three days per week (30 hours):

Flat rate method:

• 52 weeks × £6 = £312 per year
• Tax relief at 20%: £62.40

Actual costs method:

• Room: 10 sq m of 100 sq m home (10%)
• Time: 30 hours of 168 weekly hours (18%)
• Annual bills: £2,400 (electricity £1,200, gas £800, water £200, broadband £200)
• Claimable: £2,400 × 10% × 18% = £43.20
• Tax relief at 20%: £8.64

Winner: Flat rate method (£62.40 vs £8.64)

Example 2: Full-Time Self-Employed

James runs his consultancy from a dedicated home office, working 40 hours per week:

Flat rate method:

• 52 weeks × £6 = £312 per year
• Reduces taxable profit by £312

Actual costs method:

• Room: 15 sq m of 120 sq m home (12.5%)
• Time: 40 hours of 168 weekly hours (24%)
• Annual bills: £4,500 (electricity £1,500, gas £1,200, water £300, council tax £1,500)
• Claimable: £4,500 × 12.5% × 24% = £135
• Plus: Full broadband £480
• Total: £615 reduces taxable profit

Winner: Actual costs method (£615 vs £312)

Example 3: Higher Rate Taxpayer

Emma works from home full-time for her employer, using a dedicated office:

Flat rate method:

• 52 weeks × £6 = £312 per year
• Tax relief at 40%: £124.80

Actual costs method:

• Employed individuals typically cannot claim actual costs
• Limited to flat rate only

Winner: Flat rate method (only option available at £124.80)

How AccountsOS Helps Track Home Office Expenses

Managing home working expenses becomes effortless with AccountsOS. Our AI-powered platform helps you maximise your tax relief whilst staying fully compliant.

Automated expense tracking: Simply photograph household bills, and AccountsOS automatically categorises them and calculates your claimable proportion based on your home office setup.

Smart calculations: Tell AccountsOS about your workspace once—room size, hours worked, total home size—and it applies the correct proportions to every bill automatically. No spreadsheets, no manual calculations.

Both methods compared: AccountsOS calculates your relief under both the flat rate and actual costs method, showing you which saves more money. Switch between methods year-by-year as your circumstances change.

HMRC-ready records: When Self Assessment time arrives, AccountsOS generates a complete expense summary with all supporting calculations. Your records are stored securely for six years, ready if HMRC ever enquires.

Quarterly reminders: Never miss a bill. AccountsOS prompts you when it's time to log household expenses, ensuring you claim every pound you're entitled to.

The platform also tracks your business mileage (use our mileage calculator), equipment purchases, and other allowable expenses—giving you a complete picture of your tax position throughout the year.

Frequently Asked Questions

Can I claim working from home tax relief if I only work from home one day per week?

Yes, you can claim the £6 flat rate for any week you work from home for at least 25 hours. If you work one full day (8 hours) from home each week, you won't meet the threshold. However, if your home working totals 25+ hours weekly, even spread across multiple days, you qualify.

Do I need permission from my employer to claim?

For employed workers, your employer must require you to work from home—you can't claim if it's purely your choice when an office is available. You don't need written permission, but HMRC may check with your employer if queried. Keep emails or company policies that demonstrate home working is a requirement.

Can I claim for previous tax years?

Yes, you can backdate claims for up to four tax years. If you've been working from home but haven't claimed, you can amend previous tax returns or make a claim for tax relief. Many people discovered they were eligible during pandemic home working and successfully claimed back several years of relief.

What if I'm both employed and self-employed?

You can claim for both sources of income separately. Use the flat rate through your employment tax code or Self Assessment, and claim either method for your self-employed income on the same return. Just ensure you're not double-claiming for the same hours—if you work from home simultaneously for both roles, apportion the time appropriately.

Does claiming home office expenses affect my Capital Gains Tax?

For most people, no. If you claim only running costs (electricity, heating, water, broadband), there's no CGT implication when you sell your home. However, if you claim a proportion of rent or mortgage interest, or claim a portion of your home as exclusively for business, you may create a CGT liability on that portion. This rarely affects small-scale home workers using one room occasionally.

Can I claim if I rent my home?

Yes, self-employed individuals can claim a proportion of rent as a business expense using the actual costs method. Calculate the business use portion of your rent using the space and time method explained above. Employed workers cannot claim rent costs—they're limited to the £6 flat rate.

How does HMRC check working from home claims?

HMRC may request evidence during an enquiry, which is why record-keeping matters. For flat rate claims, they might ask your employer to confirm home working requirements or check your diary records. For actual costs, they'll want to see bills, calculations, and measurements. Reasonable, justifiable claims with proper records are rarely challenged.

Can I claim for a new desk and office chair?

Yes, but separately from home working relief. Office furniture and equipment are capital allowances or equipment expenses. Claim the full cost (up to the Annual Investment Allowance) for items used exclusively for business, or a business-use proportion for dual-purpose items. See our full guide to allowable business expenses. These claims are in addition to home running costs.

Maximise Your Working From Home Tax Relief

Working from home creates genuine additional costs, and HMRC recognises this through tax relief. Whether you choose the simple £6 weekly flat rate or invest time in calculating actual costs, you're entitled to reduce your tax bill.

The key is to choose the method that matches your circumstances. If you're working from home occasionally or have modest household bills, the flat rate is perfect. If you run a business from a dedicated home office with substantial costs, calculating actual expenses often delivers far greater relief.

Don't leave money on the table. Review your working pattern, estimate your costs, and make your claim. With AccountsOS handling the calculations and record-keeping, claiming becomes effortless—giving you more time to focus on your business.

Start tracking your home office expenses with AccountsOS today and ensure you claim every pound of tax relief you deserve. See how it works and pricing to get started.