What is the Flat Rate Allowance?
The £6 per week flat rate allowance is a simplified method introduced by HMRC for employees working from home. Instead of tracking individual expenses, you can claim a tax-free allowance of £6 per week for additional household costs.
🏛️ Official HMRC Guidance
According to HMRC's EIM32760, employees can claim £6 per week (£26 per month) tax relief for additional household expenses incurred while working from home.
✅ Flat Rate Method
- £6 per week tax-free
- No receipts required
- Simple calculation
- HMRC approved
- Max: £312 per year
⚖️ Actual Costs Method
- Track all actual expenses
- Receipts required
- Complex calculation
- Higher potential claim
- For larger expenses
Who Can Claim the £6 Allowance?
| Employment Type | Eligible? | Requirements |
|---|---|---|
| PAYE Employee (Full-time) | ✅ Yes | Required to work from home by employer |
| Part-time Employee | ✅ Yes | At least 1 day per week from home |
| Self-Employed | ⚠️ Different rules | Use simplified expenses on Self Assessment |
| Director of Limited Company | ✅ Yes | If paid through PAYE |
| Zero-hours Contract | ✅ Yes | If required to work from home |
| Fully Remote Worker | ✅ Yes | For entire tax year |
⚠️ Important: What Doesn't Qualify
- Voluntary home working (if you choose to work from home)
- Travel to work (normal commute costs)
- Private use of home (personal expenses)
- Employer already reimburses your costs
📊 UK Flat Rate Allowance Calculator 2024
Calculate your potential tax relief instantly:
Your Annual Tax Relief:
£96.00
40 weeks × £6 = £240 allowance
£240 × 40% tax rate = £96 tax relief
ℹ️ Based on HMRC's £6 per week flat rate. Actual relief depends on your tax rate and circumstances.
How to Claim Your £6 Allowance
📋 Step-by-Step Claim Process
Method 1: Through Your Employer (PAYE)
Your employer can pay you £6 per week tax-free through payroll. This is the simplest method and doesn't require you to do anything.
Method 2: Self Assessment Online
If you complete a Self Assessment tax return:
- Log into your HMRC online account
- Go to "Employment" section
- Find "Working from home expenses"
- Enter £6 per week for eligible weeks
- Complete and submit your return
Method 3: P87 Form (No Self Assessment)
If you don't complete Self Assessment but want to claim back up to 4 years:
- Complete Form P87
- Enter £6 × number of weeks
- Submit online or by post
- Receive tax refund via cheque or bank transfer
⏰ 2024/25 Tax Year Deadlines
- 5 April 2025: End of 2024/25 tax year
- 31 October 2025: Paper tax return deadline
- 31 January 2026: Online tax return deadline
- Up to 4 years: Backdated claims possible
How Much Could You Save?
Basic Rate Taxpayer
20% tax rate
£62.40/year
(£6 × 52 weeks × 20%)
Higher Rate Taxpayer
40% tax rate
£124.80/year
(£6 × 52 weeks × 40%)
Additional Rate Taxpayer
45% tax rate
£140.40/year
(£6 × 52 weeks × 45%)
💡 Don't Forget Backdated Claims!
You can claim the £6 allowance for up to 4 previous tax years:
- 2023/24: £6 per week
- 2022/23: £6 per week
- 2021/22: £6 per week
- 2020/21: £6 per week (COVID year)
Potential backdated claim: Up to £1,248 (£312 × 4 years)
Self-Employed? Different Rules Apply
👨💼 Simplified Expenses for Self-Employed
If you're self-employed, you can use HMRC's simplified expenses:
| Hours worked from home per month | Flat monthly amount |
|---|---|
| 25 to 50 hours | £10 per month |
| 51 to 100 hours | £18 per month |
| 101+ hours | £26 per month |
Or you can claim actual costs based on business use percentage.
🇬🇧 Recommended UK Tax Software
For accurate Self Assessment returns with home office claims:
TaxScouts Self Assessment 2024
UK's most popular online tax service. Expert accountants handle your return, including home office claims.
Frequently Asked Questions
❓ Do I need receipts for the £6 allowance?
Answer: No! That's the beauty of the flat rate allowance. HMRC accepts £6 per week without requiring receipts for individual expenses.
❓ What if I work from home 3 days a week?
Answer: You can still claim the full £6 per week if you work from home at least one day. The allowance isn't pro-rated for partial weeks.
❓ Can I claim more than £6 per week?
Answer: Yes, using the actual costs method. You'll need to calculate and provide evidence for:
- Additional heating and electricity
- Metered water used for work
- Business phone calls
- Home insurance increase
❓ What about Scotland and Wales?
Answer: The £6 allowance applies across the entire UK. However, income tax rates differ in Scotland (19%-48% vs 20%-45% in England/Wales).
Disclaimer: This guide is for informational purposes only and does not constitute tax advice. Tax rules change frequently. For advice specific to your situation, consult a qualified tax advisor or refer to official HMRC guidance.