Compliance
Adapting to the End of Homeworking Expense Tax Relief: What Employees Need to Know
From 6 April 2026, non-reimbursed homeworking expenses are no longer deductible for UK employees — here's how to adapt and what options remain.
By NomadicTax Research Team • 5-8 min read • May 28, 2026
## What Changed
Starting **6 April 2026**, employees can **no longer claim Income Tax deductions** for additional household expenses incurred when working from home that have **not been reimbursed by their employer**. ([gov.uk](https://www.gov.uk/government/publications/income-tax-removal-of-the-tax-relief-for-additional-homeworking-expenses/removal-of-tax-relief-on-non-reimbursed-homeworking-expenses?utm_source=openai)) These expenses included things such as increased utility bills, telephone costs, or other household costs previously claimable under section 336 of ITEPA 2003. ([gov.uk](https://www.gov.uk/government/publications/income-tax-removal-of-the-tax-relief-for-additional-homeworking-expenses/removal-of-tax-relief-on-non-reimbursed-homeworking-expenses?utm_source=openai))
However, if employers reimburse eligible homeworking costs (under section 316A ITEPA), those payments can still be **tax-free** and do **not incur Income Tax or National Insurance**. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32759?utm_source=openai))
## Who is Affected
- Employees who work from home and were relying on relief for household running costs that are **not reimbursed by the employer**. ([gov.uk](https://www.gov.uk/government/publications/income-tax-removal-of-the-tax-relief-for-additional-homeworking-expenses/removal-of-tax-relief-on-non-reimbursed-homeworking-expenses?utm_source=openai))
- Employers who used to allow non-reimbursed expense claims may see an internal shift as employees push for reimbursement arrangements.
- Anyone filing a P87 form (expense claims by post/phone) for working-from-home costs in tax year **6 April 2026–5 April 2027** or later will find that relief is no longer available. Past years’ claims (up to 4 prior tax years) are still allowed. ([gov.uk](https://www.gov.uk/guidance/send-an-income-tax-relief-claim-for-job-expenses-by-post-or-phone?utm_source=openai))
## Practical Implications and Examples
| Scenario | Post-6 April 2026 | Before 6 April 2026 |
|---|---|---|
| An employee working from home using extra electricity and heating | **Cannot claim deduction** unless employer reimburses costs | Could claim via ITEPA relief or fixed rate £6/week if eligible without receipts ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32815?utm_source=openai)) |
| Employer reimburses electricity bill receipts | Reimbursement is **tax-free** under section 316A | Also allowed previously, so no change |
| Employee tries to claim via P87 for homeworking after April 2026 | **Not permitted** | Permitted for some under prior scheme |
## What You Should Do Next
1. **Review your employment contract & policies**: Check if your employer has a written policy for reimbursing homeworking costs. Employees should negotiate or request reimbursement where possible.
2. **Keep receipts and records**: If employer reimburses, ensure you provide proper evidence; the employer should retain substantiation.
3. **Update your tax affairs**: If you used the fixed rate or claimed via expenses, adjust your expectations—this relief is gone unless employer reimburses.
4. **Plan ahead for future costs**: Budget for utilities and household running costs now that you may no longer recover them.
5. **Consult a tax professional**: If you have mixed income (self-employment + employment), or unique home working conditions, advice can help prevent unintended tax liability.
## Summary
Removing non-reimbursed homeworking expense relief from 6 April 2026 means **employees need either employer reimbursement** or cannot claim household cost deductions. This is a relatively modest policy in terms of fiscal impact but **significantly alters the cost structure** for many home workers. Understanding this change ensures you're not caught off guard come self-assessment season.
Stay proactive: determine where your homeworking expenses stand, and whether your employer can offer reimbursement to preserve tax efficiency.