Working from home? You could be missing out on valuable tax relief
With hybrid and remote working here to stay, thousands of UK employees and self-employed individuals are entitled to claim tax relief on work-from-home expenses. But are you claiming everything you’re entitled to?
At King and Taylor, we help clients across Sittingbourne and beyond make the most of their allowable expenses. In this guide, we explain what you can (and can’t) claim in 2025, and how to make sure you stay compliant with HMRC rules.
Who can claim tax relief for working from home?
Not everyone who works from home is eligible for tax relief, so it’s important to understand the rules before making a claim. HMRC only allows tax relief if you’re incurring extra household costs specifically because you have to work from home — not just because it’s more convenient. Whether you’re employed or self-employed, the key factor is whether home working is a necessity rather than a choice. Let’s break down the criteria.
HMRC has received more than 54,800 claims via its new online portal dedicated to working‑from‑home relief kjpcca.com.
While notable, it’s still a fraction of the millions working remotely—suggesting many are either unaware of the option or unsure they qualify.
You may be eligible to claim if:
- You’re required to work from home by your employer (not by choice).
- You’re self-employed and use part of your home as your primary place of business.
- You incur extra costs because of working from home.
If you simply choose to work from home when you could work at your employer’s premises, you won’t be eligible for tax relief. Do you need advice in this area? Get in touch with King and Taylor today.
What expenses can you claim?
The exact expenses depend on whether you’re employed or self-employed.
If you’re employed:
You can claim a flat rate of £6 per week (£312 per year) without needing receipts. This covers extra utility bills like heating, lighting, and broadband.
If your extra costs are higher than this, you may be able to claim more – but you’ll need to provide evidence.
If you’re self-employed:
You have two options:
- Simplified expenses: A flat rate based on the number of hours you work from home each month.
- Actual expenses: Claim a proportion of your actual home running costs (e.g. heating, electricity, rent or mortgage interest, broadband), based on how much of your home is used for work.
What’s changed for 2025?
There are no major changes to the flat rate allowance in 2025. However, with HMRC tightening rules around remote working, it’s more important than ever to keep good records and ensure you’re claiming correctly. You can read more about this on the HMRC website here.
How to claim tax relief
Claiming tax relief on your work-from-home expenses depends on your employment status and the type of expensesyou’re claiming. Here’s how to do it correctly in 2025.
If you’re employed:
If your employer required you to work from home and you incurred additional household costs, you can claim tax relief for up to £6 per week (£312 per year) without needing to provide evidence.
There are two ways to claim:
- Via HMRC’s online service
- Use the HMRC working from home tax relief tool to check eligibility and submit your claim online.
- This is the quickest option if you don’t file a Self Assessment tax return.
- Via Self Assessment (if you already file one)
- Include the expenses in the employment section of your tax return.
- Add the amount under “job expenses” or “household expenses” where appropriate.
👉 If you’re claiming more than the flat rate, you’ll need proof of costs and a letter from your employer confirming they required you to work from home.
🧾 If you’re self-employed:
You’ll claim work-from-home expenses as part of your Self Assessment tax return.
You can choose one of two methods:
- Simplified Expenses – Claim a flat rate based on the number of hours you work from home monthly.
HMRC guidance here: Simplified expenses for self-employed - Actual Costs Method – Claim a proportion of actual household expenses (e.g., electricity, heating, rent, broadband) based on business use.
Use HMRC’s business expenses guide to make sure you’re including the right items.
Common mistakes to avoid
- Claiming when you voluntarily work from home (and aren’t required to)
- Not keeping receipts for actual costs
- Overestimating the business use of your home
- Forgetting to update your claim if your working situation changes
Need help with your tax return?
At King and Taylor, we specialise in helping employees, freelancers, and small businesses across Sittingbourne and Kent claim the tax relief they deserve—without the headaches.
Whether you’re filing a Self Assessment or need help calculating your allowable expenses, our expert team is here to help.
Get in touch today to make sure you’re not leaving money on the table.
