Compliance
When Working From Home Rules Changed & What Employers and Employees Must Do Now
As of 6 April 2026, non-reimbursed homeworking expense reliefs ended, but new employer reimbursement exemptions simplify what is allowed—knowing the difference is essential.
By NomadicTax Research Team • 5-8 min read • May 16, 2026
## 1. Removal of Non-Reimbursed Homeworking Expenses Relief
- From **6 April 2026**, employees **cannot** claim Income Tax deductions for *additional household costs* incurred due to homeworking (like increased utilities or telephone bills) if they are not reimbursed by employer. ﹘ These were once allowed under ITEPA sections but have now been removed. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32759?utm_source=openai))
- This removal applies to the **2026-27 tax year onward**. However, employees may still claim for any earlier eligible tax years up to four years back if they haven’t already. ([gov.uk](https://www.gov.uk/government/publications/agent-update-issue-142/issue-142-of-agent-update?utm_source=openai))
## 2. What Employers Can Still Reimburse Under New Exemptions
From 6 April 2026, certain reimbursements from employers become **exempt** from Income Tax and National Insurance Contributions (NICs) under the expanded **workplace benefits relief**:
- **Eye tests** required for Display Screen Equipment users, including the cost of corrective appliances if needed.
- **Seasonal flu vaccinations**.
- **Certain home-working equipment** (laptops, tablets, accessories) needed for duties performed at home. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
These reimbursements, whether provided directly, via voucher, or reimbursed after purchase, are now tax-free **if the qualifying conditions are met**. No need for extra approvals. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
## 3. Practical Recommendations for Employers & Employees
- **Employers** should review and update expense reimbursement policies to cover the new exempt items under workplace benefits relief.
- Check payroll and HR systems to ensure that reimbursements are processed without deducting tax or NICs for the above items.
- **Employees** should understand that while unreimbursed costs are no longer deductible, obtaining reimbursements from employers for eligible items remains favourable.
- Keep receipts and records for purchases; even though tax isn’t deducted, rules require tools to be business-related.
- If you previously made claims for non-reimbursed household costs, ensure you have filed them for past years if eligible.
## 4. Example Case
John is a graphic designer working from home 2-3 days a week. He used to claim additional utility costs and telephone bills in his tax return. After 6 April 2026, these deductions are no longer available unless his employer reimburses them under the new exemptions.
His employer starts offering flu vaccination vouchers and reimburses him for a laptop monitor required at home. Under the post-6 April rules, those reimbursements **won’t attract tax or NICs**, giving John a better tax-practical outcome.