Tax

WFH Costs: How to Claim Tax Back in the UK

SYM

The shift to remote and hybrid working has become a permanent fixture in UK working life. With that comes higher energy bills, increased broadband usage, and general wear and tear on your home. The good news is that HMRC provides mechanisms for both employees and self-employed workers to claim tax relief on legitimate WFH costs. This guide covers everything you need to know to get money back. And if you're building a savings habit alongside your tax claims, the SYM app helps you set targets and track every pound.

What Counts as a WFH Cost?

WFH costs are the additional expenses you incur because you work from home rather than commuting to an employer's premises. HMRC draws a clear distinction between costs you would have paid anyway (your mortgage, basic broadband) and additional costs arising specifically from working at home. The additional element is what you can claim relief on.
  • •Extra heating and electricity used during working hours
  • •Increased broadband costs or an upgrade required for work
  • •Business phone calls made from a personal line
  • •Metered water costs if relevant to your work
  • •Office supplies like printer ink, paper, and stationery consumed for work purposes

Claiming as an Employee (PAYE)

If you're employed and your employer requires you to work from home, you can claim tax relief through HMRC's online portal without needing to file a Self Assessment return. The simplest route is the flat rate claim of £6 per week, which doesn't require any receipts. For a 20% taxpayer, that's £62.40 per year; for a 40% taxpayer, £124.80. If your actual costs are higher, you can claim the exact amount but you'll need evidence. The claim adjusts your PAYE tax code, reducing the tax deducted from your salary. You can also backdate claims for up to four previous tax years.
  • •Flat rate: £6/week with no receipts needed
  • •Exact costs: Claim higher amounts with supporting evidence
  • •Apply via gov.uk — search 'tax relief working from home'
  • •Backdatable up to four years if you were eligible

Claiming as Self-Employed

Self-employed workers claim home office costs through their Self Assessment tax return. You have two options: HMRC's simplified expenses flat rate (based on hours worked at home per month) or the actual proportion of household costs attributable to business use. The simplified rates are £10/month for 25-50 hours, £18/month for 51-100 hours, and £26/month for 101+ hours. The proportion method typically yields a higher deduction if you have significant household bills and a dedicated workspace. Unlike employees, self-employed people deduct these costs directly from business profits, which reduces both Income Tax and Class 4 National Insurance contributions.

Equipment and Furniture Claims

Beyond running costs, you may also be able to claim for equipment purchased specifically for work. Employees can claim tax relief on items they've bought for work that their employer hasn't reimbursed — this includes laptops, monitors, keyboards, and office chairs if they're necessary for your role. Self-employed workers claim these as capital allowances, and items costing under £1,000 typically qualify for the Annual Investment Allowance. For both groups, the item must be used primarily for work purposes.
  • •Laptops, monitors, and peripherals bought for work
  • •Office chairs and desks if required and not reimbursed
  • •Software subscriptions needed for your role
  • •Employees claim via P87 form or Self Assessment if total expenses exceed £2,500
  • •Self-employed claim via capital allowances on the tax return

How to Maximise Your WFH Tax Claim

To get the most from your WFH tax claim, start keeping records now. Track your energy bills month by month so you can demonstrate the increase during working periods. If you haven't claimed for previous years, backdate immediately — you could recoup several hundred pounds in one go. Combine your WFH claim with other allowable employment expenses like professional subscriptions, union fees, or uniform cleaning costs. Every legitimate deduction reduces your tax bill, and the savings add up. Use the SYM app to set a tax-savings goal and watch your progress as HMRC processes your claim.
  • •Backdate claims for up to four previous tax years
  • •Keep monthly energy bill records to evidence increased costs
  • •Combine with other allowable expenses (professional subscriptions, tools)
  • •Review your claim annually as energy prices and working patterns change
  • •Set up a savings challenge in SYM to put your tax refund to work

FAQ

Common questions about claiming WFH costs back from HMRC.
Can I claim if I choose to work from home but my employer hasn't asked me to?+

No. For employed workers, HMRC requires that your employer mandates or requires you to work from home. Choosing to do so for personal convenience doesn't qualify for tax relief.

My employer gives me a £20/month homeworking allowance. Can I still claim?+

If your employer pays £26/month or less specifically for homeworking costs, it's tax-free and you don't need to claim separately. If they pay less than £6/week, you could potentially claim the difference from HMRC, though you'd need to demonstrate additional costs.

How long does it take for HMRC to process a WFH tax relief claim?+

Online claims are usually processed within a few weeks. Your tax code will be updated for the current year, and any backdated refund is typically issued within 4-6 weeks.

Do I need to reapply every tax year?+

Yes. HMRC may carry forward your tax code adjustment, but it's good practice to confirm your eligibility and reapply each year to ensure your claim is accurate and up to date.

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