Working -from-home expenses. — April 2026
Under the existing rules, eligible employees have been able to claim a flat-rate allowance of £6 per week to cover additional household costs, such as electricity and heating, without the need to provide receipts or evidence of the actual expenses incurred. This arrangement has made it relatively straightforward for individuals who regularly work from home to receive some financial recognition for these increased costs.
However, from April 2026, this tax relief will be withdrawn entirely. As a result, employees will no longer be able to claim or be reimbursed for working-from-home expenses through this scheme.
HMRC has introduced this change following a review that identified a high number of invalid or ineligible claims, with more than half of eligibility checks reportedly failing. As a result, the relief is being removed altogether rather than restructured.
Financial impact
While the amounts involved may appear modest at first glance, the annual impact is still worth noting:
- Basic-rate taxpayers currently claiming the allowance will lose approximately £62 per year.
- Higher-rate taxpayers could lose up to £124 per year.
Although these figures may not seem substantial in isolation, they can add up over time and may be felt more acutely by those who rely on working from home as a long-term arrangement.