Compliance
Workplace Perks and Homeworking Expenses: UK Tax Reliefs Sharpened for 2026
From 6 April 2026 UK taxpayers will see expanded benefits reliefs for employer-provided eye tests, home working equipment, and flu vaccinations – while reliefs for non-reimbursed home-working expenses are removed.
By NomadicTax Research Team • 5-8 min read • March 21, 2026
## What are the upcoming changes?
- **Expanded reliefs** for certain employer-provided benefits: reimbursements or provision of **eye tests**, **home working equipment**, and **flu vaccinations** will be **exempt from Income Tax and National Insurance** as legislation takes effect 6 April 2026. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
- **Removal of Income Tax relief** for **non-reimbursed home-working expenses**. From the same date, those expenses can no longer be claimed unless reimbursed by the employer. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
## Why these changes?
- Part of the government’s Budget 2025 reforms aiming to **simplify benefits-in-kind rules** and reduce complexity. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
- The expansion of reliefs reflects post-pandemic adjustments: recognising ongoing home work and related costs. Conversely, removing individual expense claims aims to reduce administration and potential abuse. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
## Who is impacted?
- Employees who incur costs working from home without reimbursement – they will **no longer** get tax relief for home-working expenses.
- Employers who offer benefits: those who provide equipment, supplies, or pay for eye tests/vaccinations will need systems to manage reimbursements or direct provision.
- Payroll administrators and benefit planners: ensure payroll software and policies adapt for new exemptions and expense claim removals.
## What to do now
1. **Audit current policies**, particularly for remote working expense arrangements. Identify non-reimbursed expenses that employees currently claim.
2. **Communicate with staff**: let employees know what counts as a qualifying benefit and what does not from April 2026. Transparency reduces surprise for the upcoming tax year.
3. **Adjust payroll systems**: ensure benefits-in-kind software or processes capture the expanded reliefs correctly, and disallow unreimbursed expense claims after the change date.
4. **Employer reimbursement strategy**: for employees who incur home working expenses, consider offering reimbursement programs rather than relying on self-claims.
## Example scenario
> Sarah works from home for two days a week and previously claimed non-reimbursed home working expenses (electricity, broadband, etc). From 6 April 2026, those claims will be disallowed unless her employer reimburses them. Meanwhile, her employer now offers to fund an ergonomic chair and a laptop; those will be exempt under new reliefs.
**In conclusion**, these rule changes streamline employee benefits and expense relief, favouring employer-led reimbursement models. Planning ahead ensures both employers and employees avoid unexpected tax charges and leverage the expanded exemption where eligible.