Changes to tax relief for employees working from home

From 6 April 2026, UK employees working from home can no longer claim a tax deduction for homeworking expenses through Self Assessment or an employment expenses claim route. The key change is that the former employee relief is withdrawn; only employer reimbursements can still be paid tax-free if the strict conditions are met.

What was deductible before 6 April 2026

Before that date, where the employee was required to work from home, the deductible expenses were limited to additional costs caused by homeworking, such as business phone calls and the extra gas and electricity used for the work area. HMRC guidance also allowed a flat-rate claim of £6 per week, or actual additional costs if supported by evidence.

What cannot be claimed

You could not claim items that are used for both private and work purposes, such as rent or broadband access, and you also could not claim normal living costs that do not increase because of homeworking. HMRC’s manuals state that the expense must be wholly, exclusively and necessarily incurred in performing the duties of the employment.

What changes from 6 April 2026

From 6 April 2026, the employee tax relief itself is no longer available, so employees cannot make a personal tax deduction claim for working-from-home expenses. However, an employer can still reimburse additional homeworking costs tax-free where the employee is genuinely required to work from home and the payment meets the employment income rules.

Practical summary

For employees from 6 April 2026, the only homeworking-related amounts that remain potentially tax-free are employer reimbursements of genuine additional costs, not employee claims for deductions. In practice, that means no relief for a home office through the employee’s tax return, but employer-paid reimbursements may still be possible for items like additional heating, lighting, and business phone charges if the conditions are met.

Legislative basis

The HMRC position reflects the statutory test in section 336 ITEPA 2003: a deduction is allowed only for expenses incurred wholly, exclusively and necessarily in the performance of the duties of employment. HMRC’s employment income manual applies that rule to homeworking expenses and explains the limited categories that may qualify when the relief was available.