Remote workers in the UK who were required to work from home during the 2023-2024 tax year can claim up to £140 in tax relief from HM Revenue and Customs (HMRC). However, the deadline to apply is January 31, 2025, meaning eligible employees must act fast to avoid missing out.

This tax relief aims to help workers cover additional costs incurred while working remotely, such as higher energy bills and work-related phone expenses. However, not everyone qualifies only those who had no choice but to work from home can claim.

If you worked from home at any point during the tax year and your employer did not reimburse you for additional costs, this guide will explain:

• Who qualifies for the relief
• How much you can claim
• How to apply before the deadline
• What to do if you miss the cut-off date

Who Can Claim the £140 Tax Relief?

To qualify for this tax relief, you must meet HMRC’s strict eligibility criteria:

• Your employer must have required you to work remotely. If your company closed its offices or you had to work from home due to company policy, you can claim. However, if you chose to work remotely for convenience, you are not eligible.
• You must have incurred extra household costs. HMRC allows claims for increased expenses such as heating, electricity, and business-related phone calls. However, general costs such as rent, broadband, or mortgage payments are not covered unless they were used exclusively for work.

Who Cannot Claim?

• Self-employed workers (they must claim expenses differently through Self-Assessment).
• Employees who voluntarily worked from home when office space was available.
• Those who had their work-from-home costs fully reimbursed by their employer.

For full eligibility details, visit HMRC’s official guidance.

How Much Can You Claim?

The amount you can claim depends on your income tax bracket:

• Basic rate taxpayers (20%) – up to £62.40 per year.
• Higher rate taxpayers (40%) – up to £124.80 per year.
• Additional rate taxpayers (45%) – up to £140 per year.

Rather than requiring receipts for expenses, HMRC offers a flat-rate claim of £6 per week. If you worked from home for the entire tax year (52 weeks), you can claim the full amount.

For example, a basic rate taxpayer (earning between £12,571 and £50,270 per year) who worked from home for six months would be entitled to £31.20 in tax relief.

How to Apply for the Tax Relief

There are three ways to claim this tax relief:

1. Through Your Self-Assessment Tax Return

If you already submit a Self-Assessment tax return, you can add your claim under ‘Employment Expenses’ before the January 31, 2025 deadline.

2. Using HMRC’s Online Service

If you do not normally file a tax return, you can still claim via HMRC’s online portal:

1. Log into your Personal Tax Account through the Government Gateway.
2. Click ‘Tax Relief for Employees’ and follow the instructions.
3. HMRC will adjust your tax code, meaning you will pay less tax in future salary payments.

This is the fastest method, with most claims processed within a few weeks.

3. By Post Using Form P87

For those who prefer a paper application, HMRC accepts claims via Form P87.

• Download the P87 form from HMRC’s official site.
• Complete the form with your details and work-from-home dates.
• Send it to the address listed on the form.

Keep in mind that postal applications take longer to process than online claims.

What Happens If You Miss the Deadline?

If you fail to submit your claim before January 31, 2025, you may still be able to claim for up to four years under certain conditions. However, backdated claims are not guaranteed, and processing may take longer.

What About the 2024-2025 Tax Year?

If you continue working remotely in 2024-2025, you may qualify for tax relief again. To avoid missing out:

• Keep records of your work-related expenses.
• Check with your employer whether they plan to reimburse costs.
• File your Self-Assessment tax return for 2024-2025 before January 31, 2026.

(FAQs)

Can I claim tax relief if I worked from home only part of the year?

Yes. Even if you only worked remotely for a few months, you can still claim for the weeks you were required to work from home.

What if I changed jobs during the tax year?

You can still claim tax relief for any period in which you were required to work remotely. If you had multiple jobs, you may need to submit separate claims.

How long does it take for HMRC to process the claim?

Online claims typically take a few weeks, while postal applications may take several months.

Final Thoughts

For employees who worked from home in 2023-2024, claiming this £140 tax relief is a simple way to recover extra costs. The application process is quick and straightforward, and in many cases, you can apply in just a few minutes online.

However, the January 31, 2025 deadline is fast approaching, so it’s important to act now.