Working From Home Tax Relief, Who Can Claim & How to Get a Rebate

The rules around working from home and tax relief have changed recently. The pandemic and WFH requirements at that time meant that eligibility for the rebate was extended to millions of employees. The rules have since changed to limit who can claim a rebate.

Our guide focuses on working from home tax relief as the rules stand for 2023 and beyond. We look at who is eligible and how to go about claiming a tax rebate.

Who Can Claim Tax Relief on Working From Home?

Eligibility on working from home tax relief depends upon your status as an employee, the year you wish to claim for, and if you chose to WFH rather than it being a requirement of your job.

During the pandemic, it was a legal requirement for many staff to work from home. Because of this, the goverment extended eligibility for tax relief to anyone who’d worked from a home office.

As this isn’t a requirement any longer, eligibility for 2022 – 23 onwards has reverted to the previous rules which only permit a claim in limited circumstances.

You can claim WFH tax relief if:-

• You are performing the core aspects of your role in your home office. HMRC refers to this as “Substantive Duties”_⁽¹⁾, and the type of work you do at home must meet their definition. For example, if an employee working in a Plumbing business did paperwork relating to his work in a home office, this would not qualify for a tax rebate. This would not be considered “substantive duties” because it’s not a core part of their role.
• You need proper facilities to perform your work, and these are not available from your employer. This could be because your employer does not have enough office space for all staff. It could also be due to your home location being too physically distant from your employer for you to travel to work. For example, you live in Glasgow and your employer’s office is in Bristol.
• You have not chosen to work outwith your employers office. This is an important distinction. Working from a home office must be a requirement rather than a choice.

This means that if you have chosen to ask to work from home via a flexible working request, you will not qualify for this rebate.

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Can the Self Employed Claim WFH Tax Relief?

The self employed can’t claim WFH tax relief, the rebate is limited to employees. The self employed should claim their expenses via their self assessment return.

The annual HMRC self assessment is where claims can be made for expenses and costs incurred.

How to Claim Tax Relief for Working from Home

The process for claiming tax relief for working from home is fairly straightforward. You can easily apply for the rebate yourself.

Claims for working from home tax relief can be made online using the dedicated HMRC Portal. You sneed to set up a personal account through the gateway portal.

You should have your national insurance number, passport number, payslip or your P60 form available in order to provide the correct information to support your claim.

Once you have set up your personal account, you can log in and start claiming your tax relief. You need to enter the date you started working from home and confirm which tax year you’re claiming for.

You can also apply via post using a P87 form. If you work more than 5 jobs, you must use the postal process to apply. You can get the form you need directly from the HMRC website.

It is also possible to apply by telephone under certain circumstances but it is far easier to use the online portal whenever possible.

What Expenses Can You Claim For?

There is a specific list of expenses that can be claimed via working from home tax relief.

Only those employed and paying taxes are eligible to apply for these rebates. You can only claim for things that help you do your job.

You can claim for the following expenses:-

• Gas
• Electricity
• Water
• Work related phone calls.
• Internet access
• Work equipment
• Home contents insurance.

How Much is The Tax Rebate?

The amount you can claim in tax rebate will depend on how much income tax you pay. The basic flat rate you can claim is £6 per week.

It can be broken up into the following brackets:

• Basic Taxpayers: £1.20 per week (20% of £6 = £62.40 per tax year).
• Higher rate Taxpayers: £2.40 per week (40% of £6 = £124.80 per tax year).
• Top rate Taxpayers: £2.70 per week (45% of £6 = £140.40 per tax year).

How is the Tax Rebate Paid?

If you are backdating your claim then it is likely you will receive a cheque directly from HMRC once it has been processed.

Should you be claiming on the current tax year, then you will simply pay less tax once you are paid. This will also change your tax code.

Can Claims for Home Working Expenses be Backdated?

You can backdate claims for home working expenses for up to 4 years.

The deadlines for the backdated home working expenses claim are as follows:

• 2021 / 2022 tax year – apply by 5th April 2026.
• 2020 / 2021 tax year – apply by 5th April 2025.
• 2019 / 2020 tax year – apply by 5th April 2024.
• 2018 / 2019 tax year – apply by 5th April 2023.

The online portal remains open for these requests. For these claims, you will receive a cheque from HMRC, potentially up to £280.

Since it is now not a legal requirement to work from home, many workers that were eligible during covid are no longer able to claim.

Other Employment Expenses that are Eligible for Tax Rebates

Bear in mind that there are some other employment expenses that are also eligible for tax rebates.

In some instances, you may be able to claim tax relief on:

• Work uniforms.
• Work related mileage.
• Professional fees.
• Subscriptions.
• Tools and equipment.

The same HMRC form can be used to claim for these employment related expenses. Our guide on the P87 Form has more information on the expenses that are eligible for rebates.

FAQ