Working From Home Allowance: Ended for Employees, With a Catch

For years, employees working from home could claim tax relief on 6 pounds a week through HMRC. That's now ended for new tax years. GOV.UK says that from the 2026 to 2027 tax year, you won't be able to claim it. But there's still money on the table for earlier years, and the self-employed have their own separate rules that haven't changed. Here's who can claim what.

Employees: what's changed

Tax year	Can employees claim working from home relief?
2026 to 2027 onwards	No
The 4 previous tax years	Yes, if you had to work from home

So if you were required to work from home in earlier years and never claimed, you can still go back. The window covers the 4 tax years before the current one.

Who could claim for earlier years

The key word is "have to". GOV.UK says you can claim if you had to work from home, not if you chose to. That rules out a lot of people:

• If your contract lets you work from home some or all of the time, you can't claim.
• If your employer has an office but it's sometimes full so you work from home, you can't claim.
• If you simply prefer working from home, you can't claim.

You'll need to send evidence that you had to work from home, and receipts or bills if you're claiming your exact extra costs rather than the flat rate.

How much it was worth

The relief depends on your tax rate. GOV.UK's example: a basic-rate taxpayer claiming on 6 pounds a week gets 1.20 pounds a week in tax relief, 20% of 6 pounds. Over a full year that's about 62 pounds, more for higher-rate taxpayers. That's my sum from GOV.UK's weekly figure. It's not a fortune, but for up to 4 back years, it's worth a few minutes if you qualify.

What you can't claim

Even in eligible years, you can't claim for things you use for both private and business purposes, like rent or broadband access. The relief is for the additional household costs of having to work at home.

Self-employed: the flat rates still apply

If you're self-employed, the employee change doesn't affect you. You can still use simplified expenses for working from home, a flat monthly amount based on hours:

Hours of business use at home per month	Flat rate per month
25 to 50	10 pounds
51 to 100	18 pounds
101 and more	26 pounds

You need to work at least 25 hours a month from home to use it. GOV.UK's example: 40 hours a month for 10 months and 60 hours for 2 months gives 10 months at 10 pounds plus 2 months at 18 pounds, a total of 136 pounds for the year.

Phone and internet for the self-employed

The flat rate doesn't include phone or internet. You claim those separately, as the business share of the actual bills. That's a useful extra for anyone who runs their business online. Keep the bills and a note of how you worked out the business share.

Flat rate or actual costs?

Simplified expenses are optional. If your real business share of home running costs is higher, for example because you have a dedicated workspace and high energy bills, working out actual costs may give a bigger claim. GOV.UK's simplified expenses checker compares the two.

What about employers paying you for home working?

The change covers the tax relief you claim from HMRC. It's separate from anything your employer chooses to pay you towards home-working costs, which is a matter between you and your employer and its payroll. If your employer does pay something, check your payslip to see how it's treated, and don't assume it replaces the old relief.

Common questions about back claims

• I worked from home in lockdown. If you had to work from home in a tax year within the last 4, you may still be able to claim for that year.
• I've got a hybrid contract. If your contract lets you choose, GOV.UK says you can't claim.
• I already claimed. You can't claim the same year twice.

What to do now

1. Employees: check whether you had to work from home in any of the last 4 tax years and haven't claimed.
2. Gather evidence, such as a letter or policy showing you were required to work from home.
3. Self-employed: keep a monthly log of hours worked at home.
4. Self-employed: claim phone and internet separately as the business proportion.

My verdict

For employees, the working from home allowance is over for new tax years, so the only value left is in back claims if you were required to work from home. For the self-employed, nothing's changed: log your hours and claim the flat rate or actual costs. If you're going self-employed, sole trader vs limited company and the costs of starting a business in the UK are the next reads.

Frequently asked questions

Can I still claim working from home tax relief?

Not for the 2026 to 2027 tax year onwards as an employee. You can still claim for the 4 previous tax years if you had to work from home.

Who could claim working from home relief?

Employees who had to work from home, not those who chose to or whose contract allowed it.

How much was working from home tax relief worth?

Relief on 6 pounds a week, so 1.20 pounds a week for a basic-rate taxpayer.

What can self-employed people claim for working from home?

Flat rates of 10, 18 or 26 pounds a month depending on hours, if they work 25 or more hours a month at home.

Does the self-employed flat rate include broadband?

No. Phone and internet are claimed separately as the business share of the actual bills.