Changes to Home-Working Expenses
Following announcements made at the Autumn Budget in November 2025, changes taking effect from 6 April 2026 will impact how employees across the UK can claim tax relief for home-working expenses.
This affects HMRC claims only, not employer reimbursements.
This affects HMRC claims only, not employer reimbursements.
What is changing?
From 6 April 2026, employees will no longer be able to claim Income Tax relief directly from HMRC for home-working expenses. HMRC has stated that the relief was removed due to high levels of non‑compliance and ineligible claims identified during compliance checks.This means:
- the £6 per week flat-rate allowance will no longer be available
- claims for additional household costs will no longer be accepted
What is NOT changing?
Employers can still reimburse home-working costs.
Where costs are:
Where costs are:
- wholly, exclusively and necessarily incurred in the performance of the duties of the employment
Employees can continue to be reimbursed free from Income Tax and National Insurance contributions.
The key change is how relief is accessed, not whether support exists.
What this means in practice
- Employees will no longer be able to claim home‑working tax relief from HMRC, including through Self Assessment tax returns, from April 2026.
- Support may still be available where employers choose to reimburse costs
- Employer policy will become the key factor in determining support going forward
- Employees can still claim for eligible home-working expenses incurred up to 5 April 2026, subject to HMRC rules and deadlines.
- This change applies only to additional household expenses for home working – other allowable employment expenses are unaffected
What you should do now
We recommend that employers:
review home-working and expenses policies following the April 2026 changes decide whether to continue reimbursing home-working costs communicate any changes clearly to employees ensure payroll processes distinguish correctly between taxable and tax-free payments
Employees should
check whether their employer will reimburse home-working costs ensure any eligible historic claims are submitted before HMRC deadlines retain records of other employment-related expenses
Employees should
Final thoughts
While this change removes the ability to claim via HMRC, tax-free employer reimbursement remains available where conditions are met.
For many organisations, the key impact will be on internal policy, payroll processes, and employee communications.
For many organisations, the key impact will be on internal policy, payroll processes, and employee communications.
Next Steps
If you would like advice on how these changes affect your business, or support reviewing your expenses policy, our Tax Team at Fiander ETL can help you prepare ahead of April 2026.
