Annie
15th Apr 2025
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5
minutes
More of us than ever are working from home instead of going to the office every day. Did you know that you can claim tax back on some things – and a home working allowance, too? As an employee, if you use things for work purposes at home, you could claim some allowances.
Claim for Office Equipment
Your employer might not pay for you to buy a new desk, chair, or lamp – but you can claim tax relief on ones you buy yourself. You can also claim relief on expenses used solely for business purposes, such as business phone calls, and business portions of gas and electricity. You can either work out the exact cost, or claim a flat £6 a week (which results in £1.20 a week relief for basic rate tax payers).
The P87 form allows PAYE workers who work remotely to claim tax relief at their rate on home office essentials, up to the total of £2,500 a year. So, if you pay 20% tax, you’ll get that much relief – while higher-rate payers will receive 40% relief.
If you use your own vehicle for work, and your employer doesn’t pay expenses, you can claim for that, too. This doesn’t include commuting to and from your regular place of work (i.e., the office), but if you have to travel for work that is included.
Find out how to claim on the Gov.uk website here.
Request a Home Working Allowance
Employees who are working from home can request an extra weekly allowance from their employer. This is to cover the rise in utilities bills, as working remotely means you’re using more electricity, gas, and water.
The allowance for 2025/26 is £6 per week and is paid tax-free. If you’re claiming for these expenses via a P87 form, you can’t also request this home working allowance.
You’ll need to ask your employer to arrange this allowance for you. They can refuse, but it is unlikely (and if they do, you can use the P87 form to claim tax relief for yourself).
Note that the gross figure on your payslip won’t change. Instead, you’ll pay £6 a week less tax.
Check what you can expense
Do you need to print things out? Post things? Any costs involved in normal office activities should be covered by your employer.
Speak to your boss to find out what you can expense each month. Whatever you buy must be exclusively for business use, but if you’re using materials or – for example – a work mobile phone, this should be paid by the company.
Keep all your receipts – and if you’re paid hourly, remember to include the time spent shopping for supplies and posting items.
If you regularly need to order and use items for business purposes, such as stationery, it could be worth asking for access to a business account to purchase directly from and have sent to your home, rather than buying yourself and waiting to reclaim expenses.
Save on bills
As well as claiming working from home allowances and expenses, you can always do more to save money while remote working.
Switching energy suppliers, for example, could save you hundreds of pounds each year. Remember to also consider switching other suppliers, such as broadband and home insurance, to keep premiums down and long-term savings up!
You could also:
Put on extra layers
A jumper could be all you need – instead of turning the thermostat up! Before you turn your heating up, take a look at what you’re wearing. If you could add socks, a jumper, or an extra layer, this could save you a lot over the course of a month or year.
Consider a heated blanket
In colder months, if you’re the only person working from home during the day, consider getting a heated throw or heated hoodie. These will keep you toasty warm without the running costs of central heating all day.
Only boil what you need
Working from home means the kettle becomes a welcome distraction. Tea breaks can shake up the monotony of Zoom calls and spreadsheets! Instead of boiling a full kettle each time, only boil the water you need. It saves significant energy over time.
Switch off at the wall
When you’re done for the working day, shut your computer down – and then switch it off at the wall. The same goes for any appliances you’re not using – it saves a lot of energy over a short space of time!
Consider a water meter
If you live alone or with a partner, you could also consider requesting a water meter. These aren’t suitable for larger properties or families, as it works out expensive – but for couples and single people, it saves hundreds of pounds per year. (A real-life example: this writer paid £42 a month for a non-metered supply – and now pays £38 a quarter, saving £352 a year!).
Buy wholesale and batch cook
Pasta, potatoes, even flour – it’s much cheaper to buy these in bulk where you can.
If you don’t have the space for sacks of potatoes, don’t fret. Work out what you use the most in your cooking and find the largest packets or buy-one-get-one-free deals.
Consider joining a wholesaler or trade membership like Costco to take advantage of bulk buy discounts – and if possible, share the membership with a friend or family member for even more savings.
After completing your weekly shopping, utilize the bulk ingredients for batch cooking. Even if freezer space is limited, batch cooking allows you to prepare multiple portions at once and store them in the fridge for the upcoming days.
Batch cooking not only saves time but also saves a significant amount of money. Instead of opting for a takeaway meal when you’re tired, remember the healthy frozen dinners waiting at home. By the time a takeaway order arrives, your homemade meal would already be ready to eat.
For those working from home, accessing a gym may be challenging without a nearby location. However, there are numerous free exercise videos available online that require minimal equipment. Exercising together at home can help burn energy, reduce stress, and eliminate the need for additional expenses.
Working from home also results in reduced fuel costs for commuters. Savings can also be seen in areas such as work attire, daily coffee purchases, and lunch expenses. Consider redirecting these saved funds into a savings account to quickly build an emergency fund without feeling financially strained.