What changed & from when
Employee tax relief for additional homeworking expenses paid out of pocket (i.e. non-reimbursed) is being removed from 6 April 2026. Employers can still reimburse eligible expenses without tax or NICs, but individual claims via Self-Assessment will no longer be accepted. (gov.uk)lnote
Who is impacted
- Employees required to work from home by their employer, who currently claim extra household costs beyond what is reimbursed.
- Those who work at home sometimes or always, but have not been reimbursed by their employer for extra heating, lighting, or other household bills related to work.
- Employers who reimburse employees still benefit from exemptions for certain “equipment, services and supplies” as long as these are used for business purposes. (gov.uk)
Tax planning tips before the deadline
- If possible, accelerate claims for this relief before 6 April 2026 via self-assessment (if eligible). E.g., for additional heating or electricity bills that you can document.
- Ask employer to implement reimbursement arrangements for homeworking expenses. Reimbursements can still be exempt if properly documented and restricted to business use costs.
- Retain and categorise receipts for expenses and bills that relate to your workspace at home — heating, lighting, phone lines — up to the deadline.
- Where employees use broadband or telephones, ensure employer reimbursements follow HMRC rules around business vs private use. Equipment such as laptops may remain exempt if employer-provided. (gov.uk)
Example scenario
Sam works remotely by necessity. His employer doesn’t currently reimburse any home costs. Sam has been claiming £6/week extra household costs via Self-Assessment. From 6 April 2026, that relief vanishes. If Sam can, he might:
- submit a Self-Assessment before 6 April to include eligible homeworking costs, or
- ask his employer to set up reimbursements (e.g. extra electricity), so future costs are covered in a tax-efficient way.
Broader considerations
- The removal is part of a wider shift towards formalising employer reimbursement and reducing deductions claimed by individuals in unpredictable ways.
- This change increases pressure on employers to provide reimbursement, or risk employees losing out.
- It also interacts with the new MTD regime: having clear records will help prevent auditing risk in overlapping changes.
Final word
If you’re claiming non-reimbursed working-from-home costs under the current system, act swiftly. Gather receipts, prepare to make final claims, and push for formal employer reimbursement going forward.