What is Working from Home Allowance? UK Definition 2026/27
Quick Answer
Tax relief for additional household costs when working from home.
Definition of Working from Home Allowance
If you work from home regularly, you can claim tax relief for additional household costs. Employers can pay £6/week (£26/month) tax-free without evidence. Or claim actual additional costs with records. Self-employed can use simplified expenses (£10-£26/month based on hours) or actual costs.
Working from Home Allowance — Key Facts for 2026/27
| Employer payment | £6/week tax-free |
| Self-employed (25-50 hrs) | £10/month |
| Self-employed (51-100 hrs) | £18/month |
| Self-employed (101+ hrs) | £26/month |
How Working from Home Allowance Works — Example
- 1Working from home: 52 weeks
- 2Flat rate: £6/week x 52 = £312
- 3Tax relief at 20%: £62.40
- 4Tax relief at 40%: £124.80
- 5Or claim actual costs if higher
How Working from Home Allowance Affects Your Tax
WFH relief is modest but worth claiming. The COVID-era blanket allowance ended - you now need genuine additional costs. Self-employed simplified expenses are easy to claim without detailed records.
Official HMRC Guidance on Working from Home Allowance
For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.
HMRC: Working from homeFrequently Asked Questions about Working from Home Allowance
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.