Directors and employees claiming work-from-home tax relief will no longer be able to claim it from the start of the new tax year – 6 April 2026.

Why is this relief being taken away?

The Chancellor announced the removal of the work-from-home relief as part of her latest Autumn Budget.

The main reasoning given for the abolition is that it will support the nation’s deficit reduction.

HMRC has also said that it no longer believes it is fit for purpose or easy to police.

Who could claim work-from-home relief?

Work-from-home relief has been utilised by homeworkers since the early 2000s, helping them offset some of the costs of heating, lighting, broadband and other home-office expenses required to complete their jobs.

The relief allowed employees and directors to claim a flat rate of £6 per week or a deduction for actual costs.

However, those who do not claim the flat fee were required to provide evidence of the exact costs, such as an invoice or bill.

Eligibility for the relief only applied to individuals who had no other choice but to work from home.

For instance, where the business did not have an office or the daily commute was not feasible. Individuals who simply preferred to work from home did not qualify.

Is there any relief still available for home workers?

These changes are likely to have a small impact for some employees. The revised exemption is not a blanket “work from home” payment: the employee must have an objective requirement to work from home. 

For employers, the sensible approach is now to review whether staff who work from home regularly should be put on the £6 per week tax-free reimbursement rather than expecting employees to claim personally. For employees, if the employer pays the £6 per week allowance, it should be tax-free if the conditions are met. If the employer does not pay it, there is no longer a personal deduction for the additional household expenses from 6 April 2026. Speak to our team if you need any help.