By PaySlipCheck Editorial
· Reviewed by PaySlipCheck Editorial Standards Team
· 14 June 2026
· 5 min read
The UK statutory tax-exempt limit for employer home-office allowance is £6/week (£312/year). This covers the incremental cost of working from home — heat, electricity, broadband share. Above this, the excess is taxable BiK unless supported by actual receipts. Equipment (laptop, monitor, chair, desk) provided by employer for home use is separately tax-exempt under work-equipment rules. Some employers pay more than £6/week — the extra is taxable unless documentation shows actual costs.
Verified against 4 official sources · Last reviewed 14 June 2026
Requires 'homeworking arrangements' with employer (not just occasional WFH)
Above £6/week
Extra payments require:
- Evidence of actual increased cost
- Or fully taxable as BiK
Example: £15/week home allowance
- £6 exempt, £9/week taxable
- £468/year taxable at your marginal rate
Equipment provided by employer
Laptop, monitor, chair, desk, printer — all tax-exempt if provided for work
Bought outright and gifted: may become BiK at market value
What if I buy my own equipment
Can't claim tax back for equipment you buy yourself unless you're self-employed
Employer can reimburse (tax-free if for business + not gifted)
Or employer can buy + provide (fully tax-free)
Council tax + rent
Not covered by £6/week
Not tax-deductible for employees
Only self-employed can claim home-office share of these
In short
UK home office allowance from employer up to £6/week (£312/year) is tax-free. Above requires actual-cost evidence or becomes taxable. Equipment provided by employer is separately tax-exempt.
Frequently asked questions
What's the tax-free home office limit?
£6/week (£312/year) from employer without needing evidence.
Can I claim if I buy my own equipment?
Not directly — employer must reimburse or provide. Self-employed can claim; employees can't.
What if I work from home 3 days/week?
Same rule — £6/week if there's a formal homeworking arrangement.
Does council tax count?
No — not covered by any employer allowance category. Employees can't deduct.
What about a second phone line for work?
If employer pays: business-use portion tax-free. If you pay: possibly claimable via SA under limited conditions.
What is a P11D — The UK P11D form is submitted annually by employers to HMRC reporting all Benefits in Kind provided to employees. You get a copy showing your total BiK for the tax year. HMRC uses this to adjust your tax code and collect BiK tax.
More on related topics
Childcare vouchers — UK childcare vouchers closed to new joiners in October 2018 — existing users can continue. Tax-Free Childcare replaced it (£2,000/child/year government top-up). This guide covers both + which is better for your situation.
Company car tax — UK company car BiK tax is calculated as list price × emission-band % × your marginal Income Tax rate. Electric cars sit at 3% BiK for 2026/27 (rising 1% per year), making them exceptionally tax-efficient. This guide covers the maths + when a company car beats a car allowance.
Company car vs allowance — UK company car is better than cash car allowance for electric vehicles (3% BiK) at higher-rate tax. Cash allowance is better for petrol/diesel cars at higher-rate. This guide covers the specific numbers.
All tax figures on this page use the same configuration that powers our
calculators — see our
editorial standards for the review process.
Last reviewed: 14 June 2026.
Next review due 14 December 2026.
Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.