With more people working from home than ever before, it’s important to understand how tax relief applies to homeworking expenses. If you incur additional costs because you need to work from home for your employer, you may be entitled to tax relief.
If your employer requires you to work from home — whether on a regular or temporary basis — you may be able to claim tax relief for the additional household costs you incur as a direct result. This can include:
Increased heating and electricity
Additional business telephone calls
Costs associated with business use of your home broadband
The key principle is that the expenditure must be wholly, exclusively and necessarily incurred because of your homeworking duties.
Common examples of expenses that might qualify include:
If you are working at home and your heating and lighting costs increase as a result, you may be able to claim relief for the additional cost.
You may claim tax relief for additional telephone or internet costs that arise because you are required to work from home.
Stationery and other consumables used specifically for your work duties may be eligible.
Routine household costs that would be incurred regardless of working from home (such as standard rent or mortgage costs) are not allowable for tax relief.
HMRC allows a flat rate tax relief for homeworking where an employer requires an employee to work from home.
For qualifying taxpayers, a standard amount can be claimed without needing to calculate exact additional costs. This simplifies the process considerably.
For example:
A fixed flat rate amount is available each tax year
No proof of specific additional costs is required
This relief can be claimed through your Self Assessment return or by contacting HMRC
The flat rate approach is particularly useful where employees incur modest additional costs and do not keep detailed records.
Employees can claim tax relief by:
If you complete a Self Assessment tax return, you can include homeworking expenses in the employment section.
If you do not file a Self Assessment return, you can contact HMRC directly to claim the relief. HMRC will process the claim and adjust your tax code or issue a repayment where applicable.
In either case, you should be clear about the period for which you are claiming and the basis for the claim.
When making a claim for tax relief, it’s helpful — though not always strictly required — to retain supporting information such as:
Utility bills
Broadband and phone invoices
A log of additional costs incurred due to homeworking
Keeping records supports the accuracy of claims and helps in the event of any query from HMRC.
If your employer reimburses some or all of your homeworking costs:
You normally cannot claim tax relief on reimbursed amounts
However, if the reimbursement is below the HMRC approved homeworking reimbursement amount, you may still be able to claim relief on the difference
Your employer may also choose to pay a tax‑free homeworking allowance to employees, which can reduce the amount of relief you need to claim yourself.
Many employees now work under hybrid arrangements — splitting time between home and an office. The same principles apply:
Relief is available for additional costs arising from homeworking requirements
It does not apply simply due to personal choice to work from home
Clear records of when and why you are required to work at home will help support any claim.
Understanding and claiming homeworking tax relief need not be confusing.
Applegrow Financial Advisors can help you:
Determine whether you qualify for relief
Choose between flat rate relief or an itemised claim
Complete your claim accurately
Interact with HMRC on your behalf if challenges arise
Advise employers on appropriate reimbursement strategies
Whether you are an employee working remotely due to business requirements or hybrid arrangements, we can help ensure you maximise legitimate tax reliefs.
Contact Applegrow Financial Advisors today for personalised advice on claiming relief and organising your records.
