Overview of the Change
Effective 6 April 2026, the UK government expanded the relief available for certain workplace benefits. Employers can now reimburse employees tax and National Insurance–free for:
- Eye tests required for Display Screen Equipment (DSE) users
- Corrective appliances for Visual Display Unit (VDU) use
- Seasonal flu vaccinations
- Eligible homeworking equipment
Previously, only direct provision (not reimbursement) qualified for relief; this change helps imbalance between hybrid, remote, and in-office work. (gov.uk)
Why It Matters
- Simplifies payroll and expense handling by removing the need for benefit-in-kind assessments where reimbursements meet conditions.
- Offers fairer tax treatment for those working remotely or paying up front themselves.
- Reduces administrative burden for both employers and employees.
Practical Implications & Examples
Imagine TechCo Ltd., which has several remote employees who buy their own keyboards or laptops for homeworking. After 6 April 2026, reimbursement of that equipment (if eligible) is not taxable, and no Class 1 NICs are required—matching the treatment for direct provision.
Another example: Lisa gets a flu jab voluntarily from her GP and submits a reimbursement claim to her employer. Under new rules, that cost is non-taxable.
What Employers Should Do Now
- Review employee handbook and expense policies to explicitly include the newly eligible items.
- Communicate the changes to payroll, accounting, and HR teams.
- Adjust payroll systems to avoid applying tax or NIC on reimbursements that meet the defined criteria.
- Ensure that reimbursements relate to use in employment duties, with documentation kept in case HMRC questions eligibility.
Things to Watch Out For
- Reimbursements before 6 April 2026 still follow old rules—taxable unless direct provision.
- Not all homeworking equipment will be eligible—must be used in the performance of duties and meet HMRC’s definition.
- Benefit-in-kind arrangements still apply for other items not on the approved list.
Key Takeaways
- A welcome alignment with shifting work patterns and growing remote work trend.
- Employers should update their policies and systems to take advantage of the relief while ensuring compliance.
- Employees paying out-of-pocket no longer face unfair tax burdens for certain work-related costs.