Tax Planning

Goodbye £6 a Week: Homeworking Expense Relief Ends - What Employees Must Do

From 6 April 2026, employees can no longer claim tax relief for additional household costs from working at home if not reimbursed — here’s how to adjust.

By NomadicTax Research Team • 5-8 min read • April 24, 2026

## Overview of the Change Starting the **2026-2027 tax year (from 6 April 2026)**, UK tax law disallows deductions from earnings for additional household costs incurred by employees **when required to work from home**, *if* those costs are **not reimbursed** by the employer. This includes utility bills, business phone use, and other similar expenses. ([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)) ## What Is Affected - The **flat rate relief** of **£6/week** or actual billed amounts (with receipts) is no longer claimable. ([gov.uk](https://www.gov.uk/tax-relief-for-employees/working-at-home?utm_source=openai)) - The removal applies only to **unreimbursed household expenses**. If your employer reimburses you, then existing exemptions still apply. ([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)) - Other expenses (e.g. travel costs, tools or equipment explicitly provided or arranged by the employer) remain subject to existing rules. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32759?utm_source=openai)) ## Why This Changed - HMRC found that over **half of past claims** were ineligible, reflecting widespread non-compliance with existing rules. ([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)) - The aim is to simplify the system and remove ambiguities between what is employer’s responsibility vs what can be claimed in tax relief. ([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)) ## What Employees Should Do Now - **Check your employer’s policies** – an increasing number may begin offering reimbursed expense options in lieu of tax relief for unreimbursed homeworking costs. - **Retain receipts** where they are reimbursed. If there’s a policy, make sure it clearly qualifies under HMRC’s rules to ensure the reimbursement avoids tax/National Insurance. - **Claim any historical reliefs** for tax years where you were eligible but hadn’t claimed — you can still go back up to **four past years**. ([gov.uk](https://www.gov.uk/tax-relief-for-employees/working-at-home?utm_source=openai)) ## Example Sarah, a basic-rate taxpayer, used to claim £6/week for her extra home working telephone and utility costs. From 6 April 2026 this is no longer allowable. But if her employer begins reimbursing her £24/month under the new benefit (provided it meets HMRC’s criteria), that reimbursement may now be **tax-free** for her and not give rise to Class 1 National Insurance. Without reimbursement, she will see a small net increase in tax owed but simplicity in filing. --- This change shows HMRC stepping away from expense claims in areas with large ambiguity — best path forward for many will be through employer reimbursements or updated work-from-home policies.