UK Home Office Tax Deductions 2023/24
In the UK, employees and self-employed individuals can claim tax relief for additional household costs when working from home. HMRC offers two main methods: a flat rate allowance or actual costs method.
🏛️ Official HMRC Guidance
According to HMRC's official guidance, you can claim tax relief if you have to work from home for all or part of the week, including because of coronavirus (COVID-19).
✅ For Employees (PAYE)
- £6/week flat rate (no receipts needed)
- Can claim up to 4 years back
- Through online service or P87 form
- Tax code adjustment
- No capital allowances
⚖️ For Self-Employed
- Simplified expenses available
- Actual costs method
- Through Self Assessment
- Capital allowances for equipment
- More comprehensive claims
Who Can Claim Working From Home Tax Relief?
| Employment Status | Can Claim? | Conditions & Limits |
|---|---|---|
| Employee (PAYE) | ✅ Yes | £6/week flat rate or actual costs |
| Self-Employed (Sole Trader) | ✅ Yes | Simplified or actual expenses method |
| Limited Company Director | ✅ Yes | As business expense for company |
| Civil Servant | ✅ Yes | Same as employees |
| Zero-hours Contract | ⚠️ Maybe | If required to work from home |
| Not Working (unemployed) | ❌ No | No employment income |
⚠️ Important Conditions for Employees
- Required to work from home: Your employer requires you to work from home
- No suitable office space: Your employer doesn't have an office or it's not reasonable to use it
- Job requires home working: Your job requires you to live far from the office
- No choice: You cannot choose to work from home just because you prefer it
📊 UK Home Office Tax Relief Calculator 2023/24
Calculate your potential tax savings:
Your annual tax relief:
£48.00
40 weeks × £6 = £240 allowance
× 20% tax rate = £48 tax relief
ℹ️ Self-employed can claim actual costs or simplified expenses. Employees can only claim £6/week flat rate or actual costs if higher.
£6 Per Week Flat Rate Allowance
💰 HMRC's Simplified Flat Rate Method
The easiest way for employees to claim tax relief is using HMRC's flat rate allowance:
| Hours Worked From Home | Weekly Allowance | Annual Value (52 weeks) |
|---|---|---|
| Any hours (minimal) | £6 | £312 |
| 25+ hours per week | £6 | £312 |
| Actual costs method | Variable | No limit (with receipts) |
📝 What £6/week Covers
The flat rate covers additional costs of:
- Heating
- Lighting
- Water
- Internet (work-related proportion)
- Phone calls (work-related)
Note: It does not cover mortgage interest, rent, or council tax.
For Self-Employed: Simplified Expenses
👨💼 Simplified Expenses for Self-Employed
Self-employed individuals can use simplified expenses to avoid complex calculations:
Business Use of Home
- 25-50 hours/month: £10/month
- 51-100 hours/month: £18/month
- 101+ hours/month: £26/month
Vehicle Expenses
- Cars & goods vehicles: 45p/mile (first 10,000 miles)
- Cars: 25p/mile (after 10,000 miles)
- Motorcycles: 24p/mile
- Bicycles: 20p/mile
Actual Costs Method
- Mortgage interest/rent %
- Council tax %
- Utility bills %
- Insurance %
- Repairs & maintenance
⚠️ Capital Allowances for Equipment
Self-employed can claim capital allowances for equipment:
- Annual Investment Allowance (AIA): 100% of cost up to £1 million
- Writing Down Allowance (WDA): 18% or 6% for assets
- First Year Allowances: Enhanced allowances available
Examples: Computers, office furniture, printers, software.
How to Claim Tax Relief 2023/24
📋 Step-by-Step Claim Process
Step 1: Determine Your Claim Method
Decide whether to use flat rate (£6/week) or actual costs method. Flat rate is simpler with no receipts needed.
Step 2: Calculate Your Claim
For employees: Multiply £6 by number of weeks worked from home. For self-employed: Use simplified expenses or calculate actual costs.
Step 3: Submit Your Claim
Employees: Use HMRC's online service or form P87.
Self-Employed: Include in your Self Assessment tax return (SA100).
Step 4: Backdated Claims (Up to 4 Years)
You can claim for previous tax years:
- 2022/23: Deadline 5 April 2027
- 2021/22: Deadline 5 April 2026
- 2020/21: Deadline 5 April 2025
- 2019/20: Deadline 5 April 2024
⏰ Important UK Tax Deadlines 2024/25
- 31 January 2024: 2022/23 Self Assessment payment & 2023/24 balancing payment
- 5 April 2024: End of 2023/24 tax year
- 6 April 2024: Start of 2024/25 tax year
- 31 July 2024: 2023/24 Second payment on account
- 31 October 2024: Paper Self Assessment deadline
- 31 January 2025: Online Self Assessment deadline
UK Tax Rates & Thresholds 2023/24
| Tax Band | Income Threshold | Tax Rate | National Insurance |
|---|---|---|---|
| Personal Allowance | Up to £12,570 | 0% | 0% |
| Basic Rate | £12,571 - £50,270 | 20% | 12% |
| Higher Rate | £50,271 - £125,140 | 40% | 2% |
| Additional Rate | Over £125,140 | 45% | 2% |
💰 Understanding Your Tax Code
When you claim working from home tax relief, HMRC may adjust your tax code:
| Tax Code | Meaning | Example Adjustment |
|---|---|---|
| 1257L | Standard personal allowance | £12,570 tax-free |
| 1280L | Includes WFH allowance | Extra £310 tax-free |
| BR | Basic Rate (no allowance) | All income taxed at 20% |
| D0 | Higher Rate (no allowance) | All income taxed at 40% |
📊 How Tax Code Adjustment Works
Example: You claim £312 working from home allowance. HMRC adds this to your tax-free allowance:
£12,570 (standard) + £312 (WFH) = £12,882 total tax-free allowance.
This reduces your taxable income, saving you £62.40 if you're a basic rate taxpayer (20% of £312).
📈 National Insurance Contributions
Working from home allowance does not affect National Insurance:
| Employment Type | NI Class | 2023/24 Rates | WFH Impact |
|---|---|---|---|
| Employees | Class 1 | 12% (£12,570-£50,270) 2% above £50,270 |
No change |
| Self-Employed | Class 2 & 4 | Class 2: £3.45/week Class 4: 9% (£12,570-£50,270) 2% above £50,270 |
Reduced profits |
📝 Online Claim Process for Employees
Follow these steps on HMRC's online service:
- Create Government Gateway account if you don't have one
- Select "Working from home allowance" in services
- Enter your employment details and estimated weeks
- Choose flat rate or actual costs
- Submit and receive confirmation
- Tax code adjustment within 2-4 weeks
⚠️ Common Mistakes to Avoid
- Claiming if you choose to work from home: Only if required by employer
- Including personal costs: Only additional work-related costs
- Missing deadlines: Can only backdate 4 years
- Double claiming: If employer already reimburses costs
💡 Special Cases & Scenarios
Hybrid Workers
If you work 3 days from home, 2 days in office:
- Claim for 3 days/week
- Calculate proportion: 3/5 × £6 = £3.60/week
- Annual claim: £3.60 × 52 = £187.20
Part-Time Employees
Working reduced hours from home:
- Same £6/week if required to WFH
- Regardless of hours worked
- Based on requirement, not hours
Multiple Jobs
Working from home for different employers:
- Claim for each employment
- Separate claims needed
- Not aggregated across jobs
🇬🇧 Recommended UK Tax Software
For accurate Self Assessment tax returns with working from home claims:
TaxCalc Self Assessment 2024
HMRC-recognised software for Self Assessment. Easy working from home expense claims.
Frequently Asked Questions (FAQ)
❓ Can I claim if I choose to work from home?
Answer: No. You can only claim if you're required to work from home by your employer. If you choose to work from home for personal preference, you cannot claim tax relief.
❓ What if my employer pays me an allowance?
Answer: If your employer pays you up to £6/week tax-free, you cannot also claim tax relief. If they pay less than £6/week, you can claim the difference. If they pay more than £6/week, the excess is taxable.
❓ Can I claim for mortgage interest or rent?
Answer: Employees cannot claim for mortgage interest, rent, or council tax through the flat rate method. Self-employed individuals can claim a proportion of these costs through the actual costs method.
❓ How do I prove my claim to HMRC?
Answer: For the £6/week flat rate, no proof needed. For actual costs claims, keep receipts and records for 22 months after the tax year ends. HMRC may ask to see them.
Legal Disclaimer: This information is provided for informational purposes only and does not constitute tax advice. Tax laws change frequently. For specific advice tailored to your situation, consult a qualified tax advisor or visit GOV.UK.