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Mileage Rate Just Went Up to 55p Per Mile — Are You Claiming Enough?
5 min read
Working from home tax relief has been available to millions of employed workers since the pandemic. HMRC allowed employees who were required to work from home to claim a flat-rate deduction against their income tax — either £6/week (£312/year) or actual additional costs. From April 2026, this relief for employed workers is being abolished. Here's what it means and how to act before the deadline.
What Is WFH Tax Relief?
Employees who are required to work from home (not those who choose to) can claim tax relief on extra household costs incurred — heating, electricity, broadband. HMRC offered a simplified flat rate of £6/week without needing receipts. At 20% tax, this saves a basic rate taxpayer £62.40/year. At 40%, it saves £124.80/year.
Why Is It Being Abolished?
HMRC's position is that with hybrid working now the norm rather than a COVID-era exception, the blanket eligibility of recent years was too broad. From April 2026, only employees who meet strict criteria (primarily unable to work from a business premises due to their nature of work, not personal preference) can claim.
Act Now: Backdate 4 Years for Free
You can backdate claims for the tax years 2022/23, 2023/24, 2024/25, and 2025/26 through your Personal Tax Account. For someone who was WFH throughout — that's 4 × £312 = £1,248 in deductions, generating up to £249.60 in refunds (basic rate) or £499.20 (higher rate).
Claims take minutes at gov.uk/claim-tax-relief-for-your-job-expenses.
What About Self-Employed Workers?
Self-employed workers are NOT affected by this change. You retain the right to deduct a proportion of home running costs as business expenses under HMRC's "use of home as office" rules. This remains available via the flat rate (£10/month for 25+ hours/month) or actuals.
Frequently Asked Questions
I'm hybrid working — can I still claim after April 2026?
Unlikely, under the new rules. Hybrid workers who have access to an employer workspace are generally not considered to be "required" to work from home, which is the key eligibility test under the post-2026 regime.
Is it too late to claim for 2022/23?
No — you have until 5 April 2027 to claim for the 2022/23 tax year (4 years is the standard limit). Make the claim online now while the portal remains open.
Check your entitlement with our WFH Tax Relief Calculator.