Working from home? There’s been a change to tax relief

For many employees, working from home has become a normal part of working life. But if you have been used to claiming tax relief on some of the additional costs of working from home, there has been an important change.

From 6th April 2026, employees can no longer claim tax relief from HMRC for unreimbursed household costs incurred because they are required to work from home.

The change means it is worth checking what you may still be able to claim, and whether your employer can help with the costs instead.

The rules have changed

• Until 5th April 2026, eligible employees could claim tax relief on additional household costs when they were required to work from home.
• This could be claimed using a flat rate of £6 a week, or based on actual additional costs, where appropriate evidence was available. The relief was based on the individual’s rate of Income Tax rather than being a £6 payment.
• For example, someone paying Income Tax at 20% who claimed the £6 weekly rate would receive £1.20 a week in tax relief.
• That relief is no longer available for the 2026/27 tax year.
• The change was announced at Budget 2025 and came into effect on 6th April 2026. HMRC estimates that around 300,000 individuals are affected.

What if you worked from home before April 2026?

The change does not mean previous claims are lost.

If you were eligible but did not claim for earlier years, you can still make a claim for the previous four tax years, subject to the usual conditions.

For the earlier tax years, you generally needed to be required to work from home rather than simply choosing to do so. HMRC’s rules also distinguish between household costs incurred because of working from home and ordinary household expenditure.

If you are considering a backdated claim, it is worth checking the rules for the particular tax year rather than assuming that working from home automatically qualifies.

Can your employer still contribute?

Yes, the removal of employee tax relief does not prevent employers from making tax-free payments towards qualifying additional household costs.

Where the relevant conditions are met, an employer can pay up to £6 a week, or £26 a month for employees paid monthly, without needing supporting evidence of the actual costs. Employers can also reimburse higher amounts where there is evidence to support the additional costs incurred.

This makes the distinction between claiming tax relief yourself and receiving a qualifying payment from your employer particularly important.

What should employees do?

If you currently work from home, there are a few things worth checking:

• Have you claimed all the homeworking tax relief you were eligible for in previous tax years?
• Does your employer have a policy for reimbursing homeworking expenses?
• Are you incurring additional costs that your employer may be able to reimburse?
• Are you keeping evidence of relevant costs where this is required?

Get in touch for support

The rules around homeworking have changed, but that does not mean the costs associated with working from home have disappeared. If you are unsure whether you have made the right claims in previous years, Verallo’s Tax team can help you understand how changes to the tax rules apply to your individual circumstances.

Get in touch by calling us on 0203 912 9933 or emailing info@verallo.com.