Many UK employees who have worked from home in recent years may be entitled to claim up to £500 in tax relief, according to HMRC. The scheme allows eligible workers to recover some costs associated with remote work, such as heating, electricity, and business calls.
Workers who have not yet applied can backdate claims for up to four tax years, providing significant financial relief. However, not all home-based workers qualify—only those required to work from home by their employer can claim.
Who Is Eligible for HMRC’s Work-From-Home Tax Relief?
The scheme applies to employees who must work from home, either because their employer has no physical office or because their job requires them to live far from their workplace. Flexible or voluntary remote workers are not eligible, even if their employer allows home working.
According to Birmingham Live, employees can claim tax relief on £6 per week for additional household costs linked to remote work. This amounts to £62 per year for basic-rate taxpayers (20%) and £125 per year for higher-rate taxpayers (40%). Those eligible for the full four-year period could receive up to £500 in total relief.
Claims can cover business-related expenses, such as phone calls and increased utility bills, but rent, broadband, and general living expenses do not qualify. Workers choosing to claim more than £6 per week must submit detailed evidence of their actual work-related costs, such as receipts and utility bills.
How to Claim and What Evidence is Required
Employees can apply for tax relief directly through HMRC’s online portal. Claims can be made for the current tax year and up to four previous tax years, meaning those who have never applied could receive a one-off payment covering multiple years.
For claims covering 2022-2023 and later, applicants must provide proof that they were required to work from home. This could include employer confirmation or contractual obligations.
Those claiming based on actual expenses rather than the £6-per-week flat rate must also submit supporting documentation, such as utility bills, receipts, or itemised phone statements.
HMRC states that once an employee’s tax relief is approved, their tax code will be adjusted, ensuring they receive the benefit through reduced tax payments rather than a direct refund.
For remote workers who meet the eligibility criteria, this scheme provides a valuable opportunity to reclaim expenses incurred while working from home. However, those who work remotely by choice must cover these costs themselves.
