Working from home tax relief has ended for employees

From 6 April 2026, employees can no longer claim an income tax deduction from HMRC for the extra household costs of working from home, such as heating, electricity and business calls.

What this means

Before the change, employees who had to work from home could claim relief on £6 a week. That was worth about £62 a year for a basic rate taxpayer and £124 for a higher rate taxpayer.

What still applies

• Employers can still pay employees up to £6 a week tax-free towards working from home costs, without needing receipts
• Employers can also reimburse the actual extra costs tax-free
• If you were eligible in earlier years and never claimed, you may still be able to claim for those years

For employers

If your staff work from home, a £6 a week allowance through payroll is a simple, tax-free way to help with their costs. We can set this up in your payroll.