From 6 April 2026, employees will no longer be entitled to claim a tax deduction from their earnings for expenses incurred while working from home. Historically, some home-working employees have claimed either a flat-rate deduction of £6 per week or, where higher, the actual costs associated with working from home.

The government has confirmed that this relief will be withdrawn on the basis that too many individuals are claiming the deduction despite not being eligible to do so.

Employers will continue to be able to reimburse home-working expenses to employees without PAYE tax or national insurance contributions being due, but only where those expenses are wholly, exclusively and necessarily incurred as part of the employee’s employment duties. This is a stringent test to meet and will generally only apply where an employee’s contract requires them to work from home. Employees who choose to work from home will not qualify for tax-free reimbursement.