Compliance
Working from Home Relief Removed: What Employees Need to Know
From 6 April 2026, UK employees can no longer claim income tax deductions for additional household costs from working from home. This removes a long-standing relief and has implications for hybrid workers.
By NomadicTax Research Team • 5-8 min read • April 28, 2026
## What Is Changing?
From the **tax year beginning 6 April 2026**, employees in the UK will **no longer be able to claim additional household expenses** as a deduction from their earnings if they work from home. This applies to all scenarios of home working where the employer requires home working, including hybrid or forced arrangements. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32759?utm_source=openai))
Existing rules allowing a deduction under section 336 ITEPA 2003 for non-reimbursed household expenses will be ended by legislation under section 360B ITEPA 2003. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32759?utm_source=openai))
Employees may still receive employer payments or reimbursements that cover homeworking costs without tax/NIC liability—that exemption remains. ([gov.uk](https://www.gov.uk/government/publications/income-tax-removal-of-the-tax-relief-for-additional-homeworking-expenses?utm_source=openai))
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## Who It Impacts Most
- **Hybrid workers** who split time between home and office and have been claiming small deductions for electricity, heating, etc.
- **Remote employees** in roles required to work from home who don’t get full reimbursements.
- Those with higher tax rates who saw reliefs of up to ~40% of expense values.
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## Example Scenarios
**Before 6 April 2026:**
Emily is required to work from home two days a week. She spends extra on electricity and heating for a workspace and claims £6/week as non-reimbursed expenses.
**After 6 April 2026:**
That relief is no longer allowed. If Emily wants to get similar relief, she must be reimbursed by employer, or show other allowances fit, but deduction from earnings for those expenses is gone.
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## What To Do Now to Mitigate Impact
- Employers should review and possibly **introduce formal reimbursements** for homeworking costs to replace what employees lose in deduction eligibility.
- Employees should **track what costs are covered** by employers; if not, discuss adjustments or enhanced allowances.
- Review employment contracts and policies for clarity on homeworking obligations and cost support.
- When filing tax returns covering years ending before 6 April 2026 (like April 2025-26), ensure all eligible deductions are claimed before they expire.
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## Final Thoughts
This changes signals a shift towards limiting employee-borne costs. Policies are emphasizing employer responsibility for supporting homeworking.
Those affected should **budget accordingly**, push for better employer policies, and remove any dependencies on reliefs that are no longer legally available after 6 April 2026.