From April 2026, the rules for claiming tax relief when working from home will become much stricter. Under the new approach, most employees will no longer qualify for relief, although it will still be possible to submit claims for the previous four tax years. The government confirmed the change in the Autumn Budget, and it is expected to affect hundreds of thousands of taxpayers.
Under the updated rules, tax relief will only apply where homeworking is a requirement of the role. This may include situations where an employer has no workplace for staff to use, or where the nature of the job means the employee must live far from the employer’s premises. Relief will not be available where homeworking is optional, chosen for convenience, or part of a flexible working pattern.
Employees who do meet the criteria can claim for certain additional household expenses that arise solely because they work from home. This could include business related phone charges or extra heating and electricity used in the area where they work. Costs that have both personal and business use — such as broadband or rent — are not eligible.
Eligible employees can either claim a flat rate of £6 per week or claim the actual extra costs they have incurred. The amount of tax relief received depends on the individual’s income tax band. For example, someone paying the basic rate of tax would receive £1.20 per week if they claim the £6 weekly allowance. Anyone claiming actual costs must keep evidence such as bills or receipts.
Claims for the current tax year and the four previous years can be submitted through the government’s online expenses portal. Employees who complete a Self Assessment tax return must include their claim within their return instead.
Overall, the new rules effectively return the system to the pre pandemic position, where tax relief was only available when working from home was unavoidable rather than a matter of choice.
