Many employees have relied on tax relief for the costs of working from home since the pandemic. However, the rules are changing, and it is worth understanding what this means for you before the next tax year begins.
What is changing?
From 6 April 2026, employees will no longer be able to claim tax relief against their employment income for the costs of working from home.
The government is making this change because a large number of claims have been made incorrectly in recent years. As a result, the long-standing relief is being withdrawn for most employees from 2026/27 onwards.
What applies for 2025/26?
The good news is that the relief is still available for the current tax year.
For 2025/26, you can still claim:
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£6 per week without needing to provide evidence of actual costs, or
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a higher amount if you can demonstrate your actual additional homeworking expenses.
However, this is only available if you are contractually required to work from home. If you choose to work from home but your employer does not require it, the relief will not be available.
What will this cost employees?
From 2026/27, the removal of this relief will typically increase Income Tax by:
While these amounts may not seem large, they are still worth factoring into your personal tax position.
What about employer reimbursements?
There is an important exception.
From 2026/27, if your employer reimburses you for the costs of working from home, those payments can be made free of Income Tax and National Insurance, provided you are contractually required to work from home.
This means employers may need to review their policies if they want to continue supporting homeworking employees without creating a tax charge.
What should you do now?
If you currently claim working from home relief, it is sensible to check whether you are contractually required to work from home and to consider how this change will affect you from April 2026.
If you are an employer, you may want to review your employment contracts and reimbursement arrangements to ensure they remain tax-efficient.