From 6 April 2026, employees will no longer be able to claim tax relief on expenses related to working from home.

In the past, some employees could claim a flat-rate deduction of £6 per week, or their actual home-working costs, if these were higher.

The government has said this relief is being removed because it believes too many people have been claiming it when they were not entitled to it.

What about employer reimbursements?

Employers will still be able to reimburse home-working expenses tax-free, without PAYE tax or National Insurance being deducted – but only in very specific situations.

To qualify, the expenses must be wholly, exclusively and necessarily incurred for the employee’s job. In practice, this usually means the employee’s contract requires them to work from home.

Employees who choose to work from home (rather than being required to) will not qualify for tax-free reimbursement.