From 6 April 2026, it will no longer be possible for employees to claim tax relief against their employment earnings for the costs of working from home. This change is being implemented because too many people were claiming the relief incorrectly.

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

The measure will result in an Income Tax increase of £62 for basic rate taxpayers and £124 for higher rate taxpayers.

From 2026/27, if the employer actually reimburses the costs of working from home to the employee, this will be free of tax and NICs provided the employee is contractually required to work from home.