Tax relief for employees working from home

Following Boris’ announcement on 22 September, employees who were previously back working in their offices were told to work from home again.

If you are one of these employees, and you are required to work from home because of the coronavirus, then it is not too late to claim the HMRC flat rate tax relief of £6 per week for working from home.

This is a relief to cover additional utility costs as a result of working from home. The amount of tax relief received will depend on the type of taxpayer you are. Please note that you must be required to work from home because of COVID-19. If you simply choose to work from home but can go to work in an office, then you will be ineligible for the relief. HMRC’s systems will assume that you are working from home throughout the tax year and will apply the relief for the whole tax year.

From 20 October, HMRC have confirmed that where the employee works from home some, but not all of the time – for example they work at home three days a week and in the office two days a week – they can still claim the full £6 a week deduction. There is no need to scale it back just because the employee is not working at home on a full time basis.

The process to make the claim is easy and user friendly and does not require any authorisation from your employer. You can now do this online on their portal.

The portal requires you to have a personal tax account. If you do not have one set up then this can easily be done in 10 minutes. In order to set this up you will need your National Insurance number, and either a recent payslip, P60 or passport. Once completed, your pay as you earn (PAYE) tax code will be updated to include the relief and a notification will be sent to your employer’s payroll team. The impact of the claim is that it can lead to a tax saving of about £62 a year as a basic rate tax payer and approximately £124 for higher rate tax payers. If both adults claim this in a household, the overall tax savings could be up to £248.

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Should you require any further information on how to make the claim, then please contact us on