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Working from home tax relief explained
When employees are asked to work from home, their expenses are likely to increase due to additional use of things like electricity, heating and the internet. The UK Government previously offered tax relief to some employees working from home, but this was discontinued from 6 April 2026.
Key takeaways
Employees working from home could previously claim tax relief from HMRC for additional expenses
From 6 April 2026, the UK Government discontinued working from home tax relief
Reimbursements related to home working made directly by employers to employees continue to be free of tax and National Insurance contributions
The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.
What is working from home tax relief?
Working from home tax relief was previously offered to employees who are asked to work from home by their employers. From 6th April 2020, you could claim tax relief on £6 a week to cover any additional costs you incurred by having to work from home.
However, from 6 April 2026, the UK Government discontinued income tax relief for individuals working from home.
Can anyone get working from home tax relief?
The UK Government discontinued working from home income tax relief from 6 April 2026. However, payments made from employers to employees to specifically compensate for home working expenses are still exempt from income tax and National Insurance contributions.
Why did the government change the tax relief eligibility for working from home?
The government allowed this tax relief during a time where many people had no choice but to work from home, due to the pandemic. However, in 2026, many people now work from home full or part time, making it more expensive for the government to allow this tax relief on an ongoing basis. Therefore, the policy was discontinued from the 2026/27 tax year.
How much working from home tax relief did recipients receive?
Up until its discontinuation in April 2026, claimants of working from home tax relief were entitled to the following:
- Basic rate (20%) taxpayers are entitled to tax relief equivalent to £1.20 a week (20% of £6). This equates to £62.40 per tax year.
- Higher rate (40%) taxpayers receive tax relief of £2.40 a week (40% of £6) or £124.80 per tax year
- Additional rate (45%) taxpayers can receive working from home tax relief worth £2.70 a week (45% of £6), which is equal to £140.40 per tax year.
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