Tax Planning
Tax Planning Tips Under UK's New Removal of Homeworking Expense Relief
As of 6 April 2026 UK employees can no longer deduct unreimbursed homeworking costs—explore how to adjust your tax planning and employer reimbursements.
By NomadicTax Research Team • 5-8 min read • April 27, 2026
## Understanding the Change
From 6 April 2026, **employees in the UK cannot claim Income Tax relief** for additional household costs incurred when required to work from home. This includes energy bills, telephone bills, and increased utility costs. Employers however can still **reimburse eligible homeworking costs** without deducting Income Tax or National Insurance, provided that the reimbursement meets HMRC conditions. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
## Examples to Illustrate
- If you used to work from office and now pay more for heating/gas at home due to work, prior years allowed claiming part of this. That ends 6 April 2026.
- If your employer purchases desk, chair, or reimburses them after you buy them, then from 6 April 2026 that reimbursement is **tax-exempt** if rules followed. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
## Actionable Advice
- **Employers**: Update policies to document and approve purchases of homeworking equipment; ensure reimbursements follow HMRC guidance to avoid tax/NIC liabilities.
- **Employees**: Submit any remaining claims for homeworking expenses before 6 April 2026 under old rules if eligible.
## Broader Planning Implications
- Consider shifting costs such as utilities to the employer reimbursement model.
- Assess whether setting up a formal homeworking allowance structure benefits both sides.
## Margin Notes
- This is part of Budget 2025 reform implementing previously announced changes. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
- Compliance risk for employers improper reimbursements; employees making old claims must keep good records.