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?
The only remaining tax-free support will be reimbursements made directly by employers.
This applies only where the payments relate to demonstrated additional household costs and where the costs are incurred wholly, exclusively and necessarily for employment duties.
For anyone still claiming work-from-home relief, it is worth reviewing your position now to understand how this abolishment will impact your take-home pay.
