Millions miss out on HMRC working from home tax relief

FOI figures reveal that in 2020/21 more than 2.68 million workers claimed relief worth £310m. By 2023/24 that had dropped to just 300,000 claims worth £20m.

The scheme, which lets employees claim a small weekly allowance against heating, electricity and internet costs, has dwindled as people return to offices or move into hybrid working. But awareness also seems low – even at its peak, the benefit was only worth a few pounds a week.

Rebecca Smith, Buyer at Vonhaus , says: “Lots of people are surprised how little support is available for the extra energy costs of working from home.

"For hybrid workers facing high heating and electricity bills, small savings like this don’t go far.

"That’s why we recommend focusing on simple, practical steps to cut energy costs – from using targeted heating like heated throws to sealing off draughts.”

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Working from home tax relief

You may be able to claim tax relief for additional household costs if you have to work at home for all or part of the week.

You can claim tax relief if you have to work from home, for example because:

• your job requires you to live far away from your office
• your employer does not have an office

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Who cannot claim tax relief

You cannot claim tax relief if you choose to work from home. This includes if:

• your employment contract lets you work from home some or all of the time
• your employer has an office, but you cannot go there sometimes because it’s full

You can only claim for things to do with your work, such as:

• business phone calls
• gas and electricity for your work area

You can claim for this tax year and the 4 previous tax years.

You cannot claim for things that you use for both private and business use, such as rent or broadband access.

You can either claim tax relief on:

• £6 a week
• the exact amount you’ve spent

You’ll get tax relief based on the rate at which you pay tax.