From 6 April 2026, employees will no longer be able to claim a tax deduction from their earnings in respect of expenses incurred while working from home. Historically, some home-working employees have claimed a flat-rate deduction of £6 per week or the actual costs of working from home, if higher.
The government has said that such relief will be abolished because too many people are claiming the deduction when they are not entitled to it.
Employers will still be able to reimburse home-working expenses to employees free of PAYE tax and national insurance contributions, but only if those expenses are wholly, exclusively and necessarily incurred as a result of their employment duties. This is a high bar to cross – it generally means that the employee’s contract requires them to work from home. Employees who choose to work from home will not qualify for tax-free reimbursement.
