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)
- 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)
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)
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)
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.