Are you aware that you could be eligible for a working from home allowance in 2023/24? If you’ve worked remotely, either full-time or as part of a hybrid work setup, you’re entitled to claim tax relief on the additional household costs you’ve incurred.
Many UK employees are not fully informed about this opportunity, which means they could be missing out on up to £312 in tax rebates each year. In this article, we’ll explain everything you need to know about the HMRC Working From Home Allowance, including how to check if you’re eligible and how to claim it.
HMRC Working From Home Allowance
The HMRC Working From Home Allowance is a type of tax relief aimed at employees who work remotely, even on a part-time or hybrid basis, and have higher household bills due to working from home. This relief is designed to help with the extra costs that working from home can generate, such as increased heating, electricity, and broadband use.
The flat-rate allowance for the 2023/24 tax year is £6 per week, amounting to £312 per year. This simple-to-claim allowance helps you cover expenses without the need to submit detailed bills or receipts for every little household cost.
If you’ve worked from home in the past but never claimed the allowance, you can backdate claims for up to four years, potentially resulting in a significant rebate. The HMRC tax relief program was especially helpful during the COVID-19 pandemic, but it remains highly relevant today for employees who continue to work from home either occasionally or regularly.
For those looking to claim more than the flat rate, HMRC also allows individuals to claim actual costs incurred, but this method requires you to keep evidence of your bills and expenses, which can be time-consuming. The flat rate is the preferred option for most workers due to its simplicity and ease of claiming.
Eligibility for the Working From Home Allowance
Before submitting your claim, you’ll need to ensure that you meet the eligibility criteria set by HMRC. Understanding who qualifies is crucial to avoid potential rejection of your claim. The following conditions must be met for you to claim the working from home tax relief:
- You are required to work from home by your employer: The most critical eligibility factor is that your employer has asked you to work from home—whether for all or part of your working week. This could be due to office space limitations, health and safety regulations, or the nature of your role. Hybrid workers can still qualify, provided their employer mandates remote work.
- You incur extra household costs: Working from home usually leads to increased household expenses, especially for utilities like heating, electricity, and internet. The tax relief is designed to help offset these additional costs, making it easier for workers to manage their household budgets.
- Your employer does not reimburse you: If your employer already covers these additional costs through reimbursements or allowances, you won’t be able to claim the working from home allowance. This ensures that workers aren’t double-claiming benefits for the same expenses.
For the 2023/24 tax year and the upcoming 2024/25 period, the eligibility criteria remain consistent. As the world of work continues to evolve, it’s always a good idea to stay informed about any changes in HMRC’s regulations. Regularly check their website or consult your employer’s HR team to ensure that you’re still eligible for the tax relief.
How Much Can You Claim? (Tax Rebate Breakdown)
The amount you can claim through the HMRC Working From Home Allowance depends on the duration you’ve worked from home and your tax bracket. As of the 2023/24 tax year, you can claim £6 per week, which adds up to £312 for the entire year if you worked from home for the full 52 weeks. This allowance is expected to remain the same for the 2024/25 tax year.
For employees paying basic rate tax (20%), the tax relief equals £1.20 per week, meaning you can reclaim £62.40 for a full year of working from home. However, for those in the higher rate tax bracket (40%), the amount doubles to £2.40 per week, or £124.80 per year.
Here’s a breakdown of the potential rebate based on your tax rate:
| Tax Bracket | Weekly Rebate | Annual Rebate |
| Basic-rate (20%) | £1.20 | £62.40 |
| Higher-rate (40%) | £2.40 | £124.80 |
While most people opt for the £6 flat rate because it’s easier to claim, if your additional costs exceed this amount, you can apply for tax relief on actual expenses. This involves providing proof of increased costs for heating, electricity, or other expenses. However, the added paperwork means that only a small percentage of workers choose this route.
How to Claim the Working From Home Allowance?
Claiming the HMRC Working From Home Allowance is a relatively straightforward process that can be done online. Here’s a step-by-step guide to help you through the process:
- Visit the HMRC Portal: First, navigate to HMRC’s working from home tax relief page on the GOV.UK website. This page contains all the information you’ll need about the allowance and links to the online claim form.
- Complete the Claim Form: Once on the page, you’ll need to fill out the HMRC Working From Home Allowance Form. This form will ask for your National Insurance number, details of your employer, and other relevant information, such as how long you have worked from home.
- Submit Your Claim: After completing the form, submit it online. HMRC will process your claim, and the tax relief will either be applied to your tax code (reducing the amount of tax deducted from your salary) or paid as a lump sum refund at the end of the tax year.
- Claim for Previous Years: If you haven’t claimed in previous years (e.g., for 2022/23 or earlier), you can backdate your claim up to four tax years. This means you could potentially receive a substantial rebate if you’ve been working from home for several years without claiming the allowance.
Once your claim is approved, you’ll see an adjustment in your tax code, which reduces the amount of tax deducted from your monthly paycheck. If you’re owed a larger rebate for backdated claims, you may receive a one-time payment.
How to Use the HMRC Working From Home Allowance Calculator?
For those unsure of how much they are entitled to claim, HMRC provides a Working From Home Allowance Calculator on its website. This tool is especially useful for hybrid workers or those who’ve had intermittent periods of working from home. The calculator helps estimate your total rebate based on the number of weeks you worked from home and your tax bracket.
To use the calculator, simply:
- Input Your Tax Bracket: Choose between basic rate (20%) or higher rate (40%) based on your income level.
- Enter the Number of Weeks Worked from Home: The calculator requires you to enter the total number of weeks you worked from home during the tax year. If you worked remotely part-time or under a hybrid model, you’ll need to count the specific weeks.
- Estimate Your Rebate: Based on the information you provide, the calculator will give you an estimate of your potential rebate.
This is a helpful tool to check whether it’s worth claiming the flat rate or providing evidence for higher expenses. The calculator also assists in ensuring that hybrid workers can accurately calculate their rebate without overestimating the amount they are entitled to.
Special Considerations for the Self-employed
If you’re self-employed, you’re also entitled to claim tax relief for working from home, but the rules differ from those for employees. The HMRC Working From Home Allowance for the self-employed operates through simplified expenses—a method that allows you to claim a flat rate based on the number of hours you work from home each month.
For self-employed workers, the simplified expenses rates for home use are:
- 25 to 50 hours per month: Claim £10 per month.
- 51 to 100 hours per month: Claim £18 per month.
- 101 hours or more per month: Claim £26 per month.
If you work from home for a significant portion of the month, this flat-rate claim method can be a great way to reduce your taxable income without needing to keep detailed records of every utility bill. However, if your actual costs are much higher than the simplified rate, you may want to opt for the actual expenses method instead.
To claim actual expenses, you’ll need to calculate the exact proportion of your household bills (e.g., rent, electricity, gas, internet) used for business purposes. This can be more complex and time-consuming but might result in a larger tax relief claim if your costs are high.
Working From Home Allowance in Previous Years (2022/23 and Earlier)
The working from home allowance gained significant attention during the pandemic, with many employees making claims for the 2020/21 and 2021/22 tax years. For the 2022/23 tax year, many of these claims continued as companies shifted toward more permanent hybrid or remote work models.
One of the key differences between the 2022/23 tax year and earlier periods is that many people claimed the allowance due to government-mandated lockdowns, even if they only worked from home for part of the year. However, in 2023/24, the rules have tightened, and workers must now demonstrate that their employer requires them to work remotely to qualify for the allowance.
If you didn’t claim the allowance for 2022/23 or earlier, it’s not too late! HMRC allows you to backdate claims up to four years, so even if you missed out on the tax relief in past years, you can still submit a claim and receive any unpaid rebates.
Key Changes for 2024/25 and Beyond
While the HMRC Working From Home Allowance for 2023/24 has remained the same as previous years, it’s worth keeping an eye on future developments, especially for the 2024/25 tax year. As hybrid working becomes the norm for many industries in the UK, there may be updates to the allowance, eligibility criteria, or the rebate amount.
Although there have been no major announcements regarding changes for 2024/25, it’s always a good idea to monitor government policies and check with HMRC for updates. Factors such as inflation, energy costs, and changes in work patterns may influence how much workers can claim in the future. Additionally, new policies could emerge to better support hybrid and flexible workers as these work models become more mainstream.
Conclusion
The HMRC Working From Home Allowance offers a valuable opportunity for employees in the UK to claim tax relief on the extra costs of working remotely. Whether you work from home full-time or just a few days a week, the allowance provides significant financial relief for household expenses, helping to offset the costs of increased utility bills and internet use.
With a potential rebate of up to £312 per year, it’s well worth checking your eligibility and taking a few minutes to claim the allowance. By following the steps outlined in this guide, you can ensure you don’t miss out on this valuable tax benefit. Make sure to claim for previous tax years if applicable and stay informed about any changes for 2024/25 and beyond.
FAQs
Who is eligible for the HMRC Working From Home Allowance in 2024?
To be eligible, you must be required to work from home by your employer, either full-time or part-time, and incur additional household expenses. Hybrid workers can also claim if they regularly work remotely.
How much can I claim for working from home in 2023/24?
For the 2023/24 tax year, you can claim a flat rate of £6 per week, totalling £312 annually. Higher-rate taxpayers may receive up to £124.80 in tax relief.
Can the self-employed claim working from home tax relief?
Yes, self-employed individuals can claim tax relief for home office costs through simplified expenses or by calculating the actual expenses incurred due to business use of their home.
What is the difference between simplified expenses and the working from home allowance?
Simplified expenses are available for self-employed individuals, offering a flat-rate claim based on hours worked from home. The working from home allowance is for employees and provides tax relief on additional household costs.
How do I use the HMRC working from home calculator?
You can use the HMRC calculator by entering your tax rate and the number of weeks you worked from home. The calculator provides an estimate of your potential rebate based on your tax bracket and working pattern.
Can hybrid workers claim the full tax rebate?
Hybrid workers can claim the tax rebate for the weeks they worked from home. However, if you worked from home only part-time, your rebate should be adjusted accordingly.
Is there a deadline to claim the 2023/24 working from home allowance?
You can backdate claims for up to four tax years, so even if you missed out on claiming in previous years, you can still submit a claim for those years.