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Working from home tax relief changed on 6 April 2026. From the 2026/27 tax year, employees can no longer claim an Income Tax deduction for new, unreimbursed additional household expenses incurred because they work from home.
The change is important, but it does not mean every form of tax treatment for homeworking costs has disappeared. Eligible claims for earlier tax years may still be possible, while employers can continue to reimburse certain qualifying homeworking costs under separate rules.
For employees, employers and payroll teams, the key question is therefore not simply whether working from home tax relief has ended. It is which relief ended, what can still be claimed for earlier years, and what support employers may still provide.
Key changes at a glance:
| Key point | Current position |
| Effective date | The change took effect on 6 April 2026 |
| New employee claims | No deduction for new additional household costs from 2026/27 onwards |
| Earlier tax years | Eligible claims for the previous four tax years may still be possible |
| £6-a-week figure | It was a flat-rate expense amount, not £6 cash paid to every claimant |
| Employer payments | Qualifying homeworking reimbursements remain a separate tax issue |
| Self-employed people | Separate business expense rules apply |
The tax year, employment status, reason for working at home and any employer reimbursement all remain important when deciding which rules apply.
What Changed to Working from Home Tax Relief in April 2026?
The change removed an employee’s ability to claim a deduction from earnings for additional household expenses incurred while working from home and not reimbursed by the employer.
From 6 April 2026 onwards, this deduction is no longer available for new homeworking household expenses. The restriction applies even where an employee is required to work from home.
The change is narrower than some headlines may suggest. It targets unreimbursed employee household expenses rather than every expense, benefit or reimbursement connected with homeworking.
The government’s impact assessment estimated that around 300,000 people would be affected. It estimated an annual tax increase of about £62 for a basic-rate taxpayer and £124 for a higher-rate taxpayer among those affected.
How Did Working from Home Tax Relief Work Before It Ended?
Before 6 April 2026, an eligible employee who was required to work from home could potentially claim tax relief on qualifying additional household costs that the employer had not reimbursed.
These could include additional utility costs and qualifying business telephone calls. Ordinary personal costs that would have existed regardless of homeworking were not automatically allowable.
Many eligible employees used the flat-rate amount of £6 per week rather than calculating their exact additional costs. The £6 figure was the expense amount on which tax relief was calculated, not the amount paid directly to the employee.
For example, relief on a £6 weekly expense was worth £1.20 a week to a 20% taxpayer. The actual benefit therefore depended on the employee’s Income Tax rate.
The pandemic also created temporary wider eligibility for the 2020/21 and 2021/22 tax years. Those temporary arrangements should not be assumed to apply to every later historic claim.
Why Did the Government End Working from Home Tax Relief?
The policy was presented as a measure to address compliance concerns and improve fairness in the tax system, rather than as a ban on remote or hybrid working.
The Government’s Stated Reason for the Change
The official policy rationale for change says that more than half of the claims checked were considered ineligible, which was cited as evidence of high non-compliance.
The official statement said:
“This measure aims to address concerns around non-compliance and to ensure fairness across the tax system.”
The same policy assessment states that the change does not remove the existing ability of employers to reimburse eligible homeworking costs without deducting Income Tax and National Insurance contributions.
What the Change Means in the Post-pandemic Working Environment?
Homeworking is now part of many permanent employment arrangements rather than only an emergency response. Employees may work remotely because of contractual requirements, workplace location, hybrid policies or personal choice.
Those situations are not automatically treated in the same way for tax purposes. The April 2026 change makes it particularly important to distinguish between a personal employee deduction, a historic claim and an employer reimbursement.
Can Employees Still Claim Working from Home Tax Relief for Earlier Tax Years?
Potentially, yes. Current guidance states that employees can still claim for the previous four tax years, provided they meet the rules for the year concerned and remain within the relevant claim deadline.
Before making a historic claim, check:
- Whether the employee had to work from home rather than simply choosing to do so;
- Whether the relevant tax year is still open for a claim;
- Whether the employer had already reimbursed the costs;
- Whether the expense was genuinely additional and work-related;
- Whether supporting evidence is required.
For postal claims, current guidance says evidence may be needed to show that the employee had to work from home, such as an employment contract or other supporting material. It also states that a person who chose to work from home cannot claim that expense under those historic rules.
An earlier tax year being open for claims does not automatically make a claim valid. Eligibility still depends on the facts and the rules that applied at the time.
What Happened to the £6-a-Week Working from Home Allowance?
The phrase “£6-a-week working from home allowance” can be misleading because the figure has been used in two different contexts.
For eligible employee claims before the change, £6 per week was a flat-rate expense figure used to calculate tax relief. Separately, £6 per week remains relevant to certain employer payments for additional homeworking costs.
How the position differs?
| Situation | Before 6 April 2026 | From 6 April 2026 |
| Employee claims unreimbursed household costs | Potentially available if eligible | No deduction for new 2026/27 costs onwards |
| £6 flat rate for an employee claim | Could be used to calculate tax relief | No longer available for new claims under the removed deduction |
| Employer reimburses qualifying costs | Separate exemption could apply | Separate exemption can continue where conditions are met |
A basic-rate taxpayer did not receive £6 a week from the tax authority under the old employee relief. Relief on a £6 qualifying weekly amount was generally worth £1.20 at a 20% tax rate.
This distinction explains why the employee deduction can end while a separate employer payment framework continues.
Can Employers Still Help with Employees’ Homeworking Costs?
Yes. Employers may still be able to cover qualifying additional household expenses under separate rules, provided the relevant conditions are satisfied.
Employer Reimbursement of Qualifying Additional Costs
The tax-free homeworking expense rules allow certain additional household costs to be covered without tax reporting where an employee regularly works from home under an agreed arrangement and the payment does not exceed the qualifying additional costs or the applicable limit.
The current weekly limit is £6 a week, or £26 a month for monthly paid employees, for qualifying arrangements.
What Should Businesses Review After the April 2026 Change?
Employers should consider whether their remote-working, expense and payroll policies accurately reflect the new position.
A business is not automatically required to introduce a homeworking payment because the employee deduction has ended. However, existing policies should make clear whether any qualifying costs are reimbursed, which employees are covered and how expenses are handled.
Clear Communication Can Prevent Employee Confusion
The current employee deduction rules explicitly separate the abolished employee deduction from the continuing exemption for certain employer homeworking payments.
That distinction matters in employee communications. Saying that “all working from home tax relief has ended” may wrongly suggest that employers can never reimburse qualifying costs tax-efficiently.
Clear guidance from HR and payroll teams can reduce confusion about what changed on 6 April 2026 and what remains available under separate rules.
How Does the End of Working from Home Tax Relief Affect Different Types of Workers?
The effect depends on the person’s employment status and working arrangement.
Who may be affected differently:
- Employees required to work from home: The former deduction is no longer available for new additional household expenses from 2026/27 onwards.
- Hybrid workers: Working at home for part of the week does not automatically establish eligibility for a historic claim.
- Employees who choose to work from home: Voluntary homeworking has been an important restriction when assessing earlier claims.
- Employees with earlier unclaimed costs: A historic claim may still be possible if the relevant conditions and deadlines are met.
- Company directors: A director may also be an employee, so the treatment depends on the actual company and employment arrangement.
- Self-employed people: Separate business-expense rules apply and should not be confused with the employee relief that ended.
For self-employed people, working-from-home expenses can still fall within separate rules, including simplified expenses where the conditions are met.
The correct tax treatment therefore starts with the person’s status and circumstances, not simply the fact that work takes place at home.
What Should Employees and Employers Do After the April 2026 Tax Change?
The practical response is to separate historic employee claims from current employer reimbursement arrangements.
Practical checks after the change:
- Employees should check whether an eligible claim for an earlier tax year remains outstanding.
- Historic claims should be tested against the rules for the specific year concerned.
- Employees should confirm whether their employer already reimbursed the relevant costs.
- Employers should review homeworking, hybrid-working and expense policies.
- Payroll and HR teams should distinguish employee tax deductions from employer-paid expenses.
- Appropriate records should be retained where eligibility or reimbursement depends on evidence.
Employees should not assume that working remotely automatically created a historic entitlement. Employers should also avoid assuming that the end of the personal deduction removed every tax exemption connected with homeworking.
For complex arrangements or significant claims, individual professional advice may be appropriate.
What Are the Most Important Facts to Remember About Working from Home Tax Relief?
Working from home tax relief changed on 6 April 2026, but the change has a specific scope.
Employees can no longer claim the former Income Tax deduction for new, unreimbursed additional household expenses from the 2026/27 tax year onwards. Eligible historic claims may still be possible within the applicable rules and deadlines.
The former £6-a-week employee figure was an expense amount used to calculate tax relief, not a universal £6 weekly payment. Separately, employers may still reimburse qualifying additional homeworking costs where the relevant conditions are met.
The most important factors are now the tax year, employment status, reason for homeworking, type of expense and reimbursement arrangement. Treating every person who works from home as having the same tax position can lead to incorrect claims or incorrect assumptions about available support.
Conclusion
Working from home tax relief changed on 6 April 2026, ending the employee deduction for new, unreimbursed household costs.
However, eligible historic claims may still be possible, and employers can continue reimbursing qualifying homeworking expenses under separate rules.
Employees and businesses should check the tax year, eligibility conditions and reimbursement arrangements before acting. The change is significant, but it does not mean every form of homeworking tax support has disappeared.
Frequently Asked Questions
Can an eligible employee still make a claim for the 2025/26 tax year?
Potentially, yes. The 2025/26 tax year ended before the new restriction took effect. A claim still depends on satisfying the eligibility rules and meeting the relevant deadline.
How far back can a historic homeworking expense claim normally be reviewed?
Current guidance says claims may still be made for the previous four tax years. The exact deadline and eligibility conditions must be checked for each tax year.
Did employees receive the full £6 per week under the old rules?
No. The £6 figure was generally the weekly expense amount used to calculate tax relief. For a basic-rate taxpayer, relief on £6 was worth £1.20 a week.
Can an employer pay more than the standard homeworking amount?
Potentially, but the tax treatment depends on whether the payment reflects qualifying additional household costs and whether the necessary conditions and evidence are satisfied.
Does working from a kitchen table or spare room affect eligibility?
The room used is not the main test. The employment arrangement, requirement to work from home, nature of the cost and relevant tax rules are more important.
Can home internet or broadband costs be claimed separately?
The answer depends on the arrangement and whether there is a genuine additional qualifying cost. An existing private broadband subscription does not automatically become an allowable employee expense simply because it is also used for work.
Will working from home tax relief return in the future?
Future tax policy can change, but there is no basis for assuming that the former employee deduction will return. Employees and businesses should act on the rules currently in force.
