Quick Summary
- Scottish taxpayers get more working from home relief — a Higher-rate taxpayer saves £131.04 per year on the flat-rate method, versus £124.80 in England at 40%
- Two ways to claim — the flat-rate method (£6/week, no receipts) or the actual costs method (proportion of real household bills), depending on which gives you more
- The COVID-era rules are over — you can no longer claim just because you chose to work from home; your employer must require it or there must be no reasonable alternative
- Check your tax savings — use the Scottish Income Tax Calculator to find your marginal rate and calculate your exact relief
If you regularly work from home as part of your job, you can claim tax relief on a portion of your household costs. Scottish taxpayers get a better deal than those in England because relief is calculated at your Scottish marginal rate — and Scotland's rates are higher at every band above Basic.
Quick Answer: Employees who work from home because their employer requires it can claim tax relief of £6 per week (£312 per year) with no receipts needed, or claim actual proportional costs with evidence. A Scottish Higher-rate taxpayer saves £131.04 per year on the flat rate — £6.24 more than an English Higher-rate taxpayer on the same claim. Self-employed workers use HMRC's simplified expenses instead: £10–£26 per month depending on hours worked from home.
The two methods for claiming
HMRC offers two routes to claim working from home expenses. You can use whichever gives you the better result, but you cannot mix both methods in the same tax year.
Method 1: Flat rate (£6 per week)
This is the simplest option. You claim £6 per week — £312 over the full tax year — and HMRC gives you tax relief at your marginal rate. No receipts, no calculations, no tracking of bills.
The relief you actually receive depends on which Scottish tax band your income falls into:
| Scottish tax band | Marginal rate | Annual relief on £312 |
|---|---|---|
| Starter | 19% | £59.28 |
| Basic | 20% | £62.40 |
| Intermediate | 21% | £65.52 |
| Higher | 42% | £131.04 |
| Advanced | 45% | £140.40 |
| Top | 48% | £149.76 |
Compare that with England, where a Higher-rate taxpayer gets relief at 40% — saving £124.80 per year. The Scottish advantage at the Higher rate is £6.24 per year. At the Advanced rate, the gap widens to £15.60 compared to England's Higher rate.
Method 2: Actual costs
If your household bills are high or you use a significant portion of your home for work, the actual costs method may give you a larger claim.
Here's how it works:
- Add up your allowable household costs — gas, electricity, water, broadband, home insurance, council tax, mortgage interest (not repayment) or rent. You cannot include food or childcare costs.
- Calculate the proportion used for work — HMRC accepts a reasonable apportionment. Common methods include dividing by the number of rooms (excluding bathrooms, kitchen, and hallways) or by floor area.
- Adjust for time — if you only work from home three days per week, scale your claim accordingly.
Worked example: actual costs method
Sarah earns £52,000 and works from home three days per week. She uses a dedicated spare room in her four-room home (living room, kitchen excluded from the count).
| Bill | Annual cost | Work proportion (1/4 rooms × 3/5 days) | Claimable amount |
|---|---|---|---|
| Gas & electricity | £2,400 | 15% | £360 |
| Broadband | £480 | 15% | £72 |
| Council tax | £1,800 | 15% | £270 |
| Water | £420 | 15% | £63 |
| Home insurance | £360 | 15% | £54 |
| Total | £819 |
At the Scottish Higher rate of 42%, Sarah's tax relief would be £819 × 42% = £343.98 — significantly more than the £131.04 flat-rate method.
The trade-off: you need to keep records and receipts for every bill you claim. If HMRC queries your claim, you must be able to justify both the costs and the apportionment.
Try it yourself
Find your Scottish marginal tax rate to calculate exactly how much working from home relief you'd receive.
Open Scottish Income Tax CalculatorNo sign-up required.
Who qualifies for working from home tax relief
This is where many people get caught out. The rules tightened after COVID, and HMRC is stricter about who qualifies.
You CAN claim if:
- Your employer requires you to work from home as part of your contract
- Your job requires you to live far from the office with no reasonable alternative (for example, a rural-based employee whose nearest office is 100 miles away)
- There is no appropriate workspace available at your employer's premises (for instance, the office is full or under renovation)
- Your role requires working at home for specific tasks, such as handling confidential material that cannot leave your home
You CANNOT claim if:
- You choose to work from home for convenience, even if your employer allows it
- Your employer offers hybrid working as a perk but has a desk available for you
- You work from home occasionally — the arrangement must be regular and necessary
- You are a company director who simply decides to work from their own home
The COVID rules are over
During 2020/21 and 2021/22, HMRC allowed anyone who worked from home for even a single day to claim the full year's flat-rate relief. That blanket rule ended on 6 April 2022. From 2022/23 onwards — including the current 2026/27 tax year — the standard rules apply. Your employer must require it, or there must be no reasonable alternative workspace.
HMRC has been reviewing and rejecting claims where employees simply prefer to work from home. If your employer provides an office desk and you choose not to use it, you do not qualify.
How to claim: employees
The process depends on whether you complete a Self Assessment tax return.
Option A: P87 form (no Self Assessment)
If you are an employee who does not file a Self Assessment return, use HMRC's P87 form to claim:
- Go to gov.uk/tax-relief-for-employees/working-at-home
- Sign in with your Government Gateway ID
- Select "working from home" as your expense type
- Enter the flat-rate amount (£312 for the full year) or your actual costs
- HMRC adjusts your tax code so you pay less tax through PAYE for the rest of the year
The tax code adjustment means you see the benefit in your monthly payslip rather than waiting for a lump sum refund.
Option B: Self Assessment
If you already file a Self Assessment return (perhaps because you have rental income or other untaxed income), claim the expense on your tax return instead. Enter it under employment expenses.
You can also backdate claims for up to four previous tax years. If you qualified in 2022/23, 2023/24, 2024/25, and 2025/26 but never claimed, you can submit claims for all four years alongside your 2026/27 claim.
How to claim: self-employed
Self-employed workers cannot use the £6/week flat rate. Instead, you have two options.
Simplified expenses (flat rate by hours)
HMRC's simplified expenses scheme gives self-employed workers a flat monthly deduction based on the number of hours worked from home:
| Hours worked from home per month | Monthly flat rate |
|---|---|
| 25–50 hours | £10 |
| 51–100 hours | £18 |
| 101+ hours | £26 |
If you work from home full-time (say, 160 hours per month), you can claim £26 × 12 = £312 per year — coincidentally the same as the employee flat rate.
At the Scottish Higher rate of 42%, that saves £131.04 in income tax plus £6.24 in Class 4 NI (2% above the Upper Profits Limit threshold, or 6% between thresholds). Self-employed workers also save on NI, making the total benefit slightly higher than the income tax saving alone.
Actual costs (proportion of bills)
Self-employed workers can use the actual costs method instead — the same calculation described above. You claim the business proportion of household bills on your Self Assessment return. You cannot use simplified expenses and actual costs in the same tax year.
For most self-employed workers putting in full-time hours from a dedicated room, the actual costs method gives a larger deduction. But simplified expenses are easier to track and defend if HMRC investigates.
Try it yourself
See how working from home deductions affect your self-employed tax bill, including income tax and National Insurance.
Open Self-Employed Tax CalculatorNo sign-up required.
The Scottish advantage: why relief is worth more north of the border
Tax relief on expenses works by reducing your taxable income, so the value depends entirely on your marginal tax rate. Scotland's six-band system means Scottish workers in the Higher, Advanced, and Top bands save more per pound of expenses than workers on equivalent English rates.
Flat-rate comparison: Scotland vs England
| Earner type | Tax rate | Relief on £312/year |
|---|---|---|
| Scottish Higher-rate (£43,663–£75,000) | 42% | £131.04 |
| English Higher-rate (£50,271–£125,140) | 40% | £124.80 |
| Scottish advantage | £6.24 | |
| Scottish Advanced-rate (£75,001–£125,140) | 45% | £140.40 |
| English Higher-rate (same range) | 40% | £124.80 |
| Scottish advantage | £15.60 | |
| Scottish Top-rate (over £125,140) | 48% | £149.76 |
| English Additional-rate (over £125,140) | 45% | £140.40 |
| Scottish advantage | £9.36 |
The difference on the flat rate alone is modest. But on actual costs claims — where the deductible amount can reach £800 to £1,500 per year — the gap becomes meaningful. A Scottish Advanced-rate taxpayer claiming £1,200 in actual costs saves £540, compared to £480 for an English Higher-rate taxpayer on the same claim. That is £60 more per year.
Common mistakes to avoid
Claiming when your employer provides an office
The most frequent rejected claim. If your employer has a desk for you and you choose to work from home for personal preference, you do not qualify. Even if you work from home four days a week by agreement, the test is whether your employer requires it — not whether they permit it.
Claiming for commuting days
If you work from home three days and go to the office two days, you can only claim the flat rate for the full year if you regularly work from home as part of your employment duties. You cannot claim for the specific days and then also claim commuting costs for the other days. HMRC does not allow double-dipping.
Using the wrong method as self-employed
Self-employed workers sometimes claim the £6/week employee flat rate on their Self Assessment. This is incorrect — the £6/week allowance is only for employees. Self-employed workers must use the simplified expenses rates (£10/£18/£26 per month) or actual costs.
Forgetting to backdate
You can claim for up to four previous tax years. If you have been working from home since your employer made it permanent in 2022 but never claimed, you could be owed four years of relief. At the Higher rate flat method, that is 4 × £131.04 = £524.16 in unclaimed relief.
Not keeping records for actual costs claims
If you claim actual costs and cannot produce bills or a reasonable basis for your apportionment, HMRC can disallow the entire claim and charge interest on any tax underpaid. Keep copies of every bill you rely on.
Frequently Asked Questions
Can I claim working from home tax relief if I'm hybrid working?
Only if your employer requires the home-working element. If your contract states you must work from home on certain days because there is no desk available, or your role specifically requires it, you can claim. If hybrid working is simply offered as a flexible benefit and you could go to the office every day, you cannot claim.
Do I need my employer's permission to claim?
You do not need your employer to fill in any forms, but the arrangement must genuinely be required by your employer. HMRC may check with your employer if your claim is queried. If your employer confirms they have workspace available for you and home working is your choice, the claim will be rejected.
Can I claim for broadband and phone costs separately?
If you use the flat-rate method (£6/week), it covers all household costs — you cannot claim broadband or phone on top. If you use the actual costs method, broadband is included as one of the household bills you apportion. You can also claim the business proportion of work phone calls made from a personal phone, but not the line rental unless it is used exclusively for work.
What if I work from home and am on a Scottish tax code but live in England?
Your tax code determines your tax rates. If your code starts with S, Scottish rates apply regardless of where you physically work. However, your main residence determines your tax code. If you genuinely live in England, you should have an English tax code — and the English rates would apply to your relief. Check your tax code is correct before claiming.
How much can I backdate a working from home claim?
Up to four years. In April 2026, you can still claim for 2022/23, 2023/24, 2024/25, and 2025/26, as well as the current 2026/27 year. For employees, use the P87 form or call HMRC. For self-employed workers, amend your previous Self Assessment returns. Remember that the COVID blanket rules only applied to 2020/21 and 2021/22 — claims for 2022/23 onwards must meet the standard criteria.
Related Articles
- Scottish Income Tax Rates 2026/27 — all six Scottish tax bands and how they compare to England
- Self-Employed Tax Scotland — full guide to income tax, NI, and expenses for self-employed Scots
- Scottish Tax Codes Explained — what the S prefix means and how to check yours
- Salary Sacrifice Scotland — another way to reduce your tax bill at Scottish rates
- Scotland vs England Tax Comparison — side-by-side breakdown of who pays more
This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax rates and thresholds can change — always verify current rates with Revenue Scotland, HMRC, or mygov.scot, and speak to a qualified financial adviser for advice specific to your circumstances.
Sources: HMRC — Working from home expenses, HMRC — Simplified expenses for the self-employed, Scottish Government — Scottish Income Tax 2026/27, HMRC — Claim tax relief for your job expenses (P87)