At a glance

Homeworking rates and allowances:

  • What tax-free allowances are there for working from home?
  • What allowances can be paid to homeworking employees?

Fixed rates for homeworking are agreed by HMRC: these amount can be paid by employers to their homeworking employees to reimburse them for the additional costs of things such as light and heat used when homeworking. 

Alternatively, employees may be able to claim actual costs of homeworking if wholly, exclusively and necessarily incurred or in job-related accommodation. See Working from home: employer/employee

These are the maximum amounts that may be paid by an employer, without requiring a receipt, or evidence of expenditure by the employee.

Year Rate per week
From 6 April 2020

£6 (or £27 per month)

From 6 April 2012

£4 (or £18 per month)

From 6 April 2008 to 5 April 2011


From 6 April 2007



If higher amounts are paid these need to be evidenced by receipts, and the employer must disclose amounts reimbursed on form P11D, unless there is a specific dispensation in place (pre 5 April 2016) or they are approved under the new exemption for paid and reimbursed expenses (post 5 April 2016)

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How does an employee claim this £27 per month from HMRC - is it an annual allowance or monthly or even weekly?

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