Work-from-home relief has been officially abolished since its removal on 6 April.
Directors and employees will no longer be able to claim it in the 2026/2027 tax year.
Why did the work-from-home relief come to an end?
As part of the 2025 Autumn Budget, the Chancellor announced the end of the work-from-home relief.
The abolition is part of her plans to support the nation’s deficit reduction, while HMRC have been critical of the relief, noting that it is no longer fit for purpose and is too difficult to monitor.
Who used to claim work-from-home relief?
Since the early 2000s, work-from-home relief has been used by homeworkers to offset some of the costs of heating, lighting, broadband and other home-office expenses required to complete their jobs.
Using the relief, employees and directors were able to claim a flat rate of £6 per week or a deduction for actual costs.
If a homeworker did not claim the flat fee, then they were obligated to provide evidence of the exact cost they were seeking to reclaim by submitting an invoice or bill.
Only those who had no other choice but to work from home were eligible for the relief.
This was most common for workers whose employer did not have an office or could not feasibly make the commute.
If homeworking was done as a preference, the relief did not apply.
Can homeworkers still get any form of relief?
Reimbursements made directly by employers are now the only remaining form of tax-free support.
These reimbursements can only be made where the payments relate to demonstrated additional household costs and where the costs are incurred wholly, exclusively and necessarily for employment duties.
If you used to claim work-from-home relief and had planned to continue doing so, then it may be necessary to review your position to understand how it will impact your take-home pay.
