With more people working from home than ever, one of the most common questions we get is: what can I actually claim?

The rules are different depending on whether you are employed or self-employed, and getting it wrong can lead to missed savings or HMRC issues. Here is a clear breakdown.

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If You Are Employed (PAYE)

From 6 April 2026, tax relief for working from home has been abolished for employees.

This means you can no longer claim:

• The flat rate of £6 per week
• Actual additional household costs

Even if you are required by your employer to work from home, relief is no longer available under current rules.

You also cannot claim:

• Rent or mortgage costs
• Council tax
• Broadband or household bills

For most employees, no tax relief is now available for working from home expenses.

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If You Are Self-Employed

If you run your own business, the rules are more flexible.

You can claim a portion of:

• Electricity and gas
• Water bills
• Internet and phone usage
• Rent or mortgage interest
• Council tax

There are two main methods:

1. Flat Rate Method (Simplified Expenses)
Based on hours worked from home each month:

• 25–50 hours: £10/month
• 51–100 hours: £18/month
• 101+ hours: £26/month

2. Actual Cost Method
You calculate the business proportion of your home costs (e.g. number of rooms used, time used for business).

This can give a bigger claim, but you must keep clear records.

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What You Cannot Claim

Whether employed or self-employed, some things are not allowable:

• Personal costs (e.g. full rent if your home is mainly private use)
• Food and drink during the day
• Clothing (unless it is a uniform or protective gear)
• Non-business internet or phone use

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A Quick Warning

If you claim part of your home for business use (especially exclusively), it can affect Capital Gains Tax when you sell your property.

This is where many people make mistakes, so it is important to get advice before claiming large amounts.

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Final Thoughts

Working from home can give you legitimate tax savings, but only if done correctly.

Small claims add up over time, but incorrect claims can trigger HMRC enquiries.

If you are unsure which method is right for you, it is always better to get it reviewed early.

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Need help working out your claim?

📞 Call: 0161 710 1901
📧 Email: Tax@TaxesDoneRight.co.uk
Dm Us:
www.taxesdoneright.co.uk