If you’ve worked from home for any part of the tax year, even just a few days a week, you could be eligible to claim Working From Home Allowance through HMRC. This tax relief is designed to help cover the extra costs of home working like heating, electricity, and internet.
Whether you’re a CIS subcontractor, sole trader, or self-employed, this guide explains what you can claim, how it works, and how Tax2u can help you file fast and hassle-free.
What is the working from home allowance?
The Working From Home Allowance is a tax relief offered by HMRC for people who have had to work from home due to their job. If you’ve incurred extra costs like higher utility bills while working from home, you may be entitled to claim back up to £6 per week (£312 per year) tax-free.
There are two main ways to claim this allowance:
- Flat rate claim : no receipts needed
- Actual cost method : based on what you’ve actually spent (requires evidence)
Who can claim working from home tax relief?
You may be eligible to claim if:
- You worked from home during the tax year due to your job
- You incurred increased household expenses (e.g., electricity, heating)
- Your employer didn’t reimburse you for these costs
- You’re a CIS worker, sole trader, or PAYE employee working remotely
Self-employed people can claim home office costs as part of their Self Assessment.
Employees under PAYE can use the P87 form or adjust their tax code.
How much can you claim?
| Type of Claim | Amount Per Week | Total Per Year | Evidence Needed |
|---|---|---|---|
| Flat Rate (HMRC set) | £6 | £312 | No receipts needed |
| Actual Cost Method | Varies | Depends on usage | Bills + usage breakdown |
Most people choose the flat rate as it’s simpler and doesn’t require proof.
What expenses can be included?
If you’re self-employed or opting for the actual cost method, here are some typical home working expenses that can be claimed:
- Heating and electricity
- Business-related phone calls
- Internet (proportional to work use)
- Council tax (part of it, if using a dedicated room)
- Rent (proportionally, if you’re using part of your home exclusively for business)
Self-Employed vs. PAYE: What’s the difference?
Self-Employed / CIS Workers
- Claim through Self Assessment
- Can choose between simplified expenses or actual costs
- Keep records of bills and work-from-home hours
Employees (PAYE)
- Claim via HMRC’s online portal or a P87 form
- Flat rate (£6/week) unless your employer reimburses you
- Adjustment to your tax code to reflect your claim
Can I backdate my claim?
Yes, you can backdate claims up to 4 tax years, provided you were eligible during those periods.
For example:
| Tax Year | Backdate Deadline |
|---|---|
| 2023–24 | 5 April 2028 |
| 2022–23 | 5 April 2027 |
| 2021–22 | 5 April 2026 |
| 2020–21 | 5 April 2025 |
That’s potentially £1,248 in tax relief if you qualify for all four years!
Make your claim the easy way with Tax2u
We know HMRC forms and tax jargon can feel overwhelming but that’s where Tax2u comes in. We help thousands of UK workers, CIS subcontractors, and self-employed individuals:
- Register for Self Assessment
- File accurate tax returns
- Claim working from home tax relief
- Maximise all allowable expenses
No paperwork stress
Fast refunds
Full support from UK-based tax experts
Start your Working From Home Allowance claim with Tax2u today