From 6 April 2026, employees will no longer be able to claim tax relief against their employment income for the costs of working from home. This change is being introduced due to widespread incorrect claims for the relief.

The homeworking relief, set at £6 per week (or the actual amount of homeworking costs if higher), will remain available for 2025/26, but only where the employee is contractually required to work from home.

This measure will lead to an increase in Income Tax of £62 for basic rate taxpayers and £124 for higher rate taxpayers.

From 2026/27 onwards, where an employer reimburses an employee for the costs of working from home, the reimbursement will be exempt from tax and NICs, provided the employee is contractually required to work from home.