Tax Planning
Working from Home Relief Ends: Tax Planning Moves Before the Relief Disappears
The removal of tax relief for non-reimbursed homeworking expenses from April 2026 urges employees and executives to adapt their tax planning — what you should do now.
By NomadicTax Research Team • 5-8 min read • May 1, 2026
## 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](https://www.gov.uk/government/publications/income-tax-removal-of-the-tax-relief-for-additional-homeworking-expenses?utm_source=openai))lnote
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## 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](https://www.gov.uk/expenses-and-benefits-homeworking/homeworking-expenses-and-benefits-that-are-exempt-from-tax?utm_source=openai))
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## 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](https://www.gov.uk/expenses-and-benefits-homeworking/homeworking-expenses-and-benefits-that-are-exempt-from-tax?utm_source=openai))
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## 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.
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## 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.
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## 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.