The End of Working From Home Relief

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According to the latest Budget update from 26 November 2025, the government is completely withdrawing the tax deduction for homeworking expenses. From the start of the 2026 tax year, you will no longer be able to claim tax relief (WFH relief) for home costs that your employer does not reimburse—including the popular £6 per week flat rate.

If your employer doesn’t pay you back for your home office costs, you will soon have to shoulder the full cost yourself.

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What Exactly Is Changing?

For years, the UK tax system has had a specific rule (under EIM32760+) allowing employees to reduce their tax bill if they were forced to work from home. However, the new rule is blunt:

“From 6 April 2026, no deduction will be available for homeworking expenses which are not reimbursed by the employer”.

This removes the ability for an individual employee to fill out a P87 form or Self Assessment tax return and claim money back for things like heating and electricity.

The Current Rules (What You Can Still Do Until 2026)

It is important to understand that the rules are already quite strict right now. Until the final cut-off in April 2026, you can still claim a deduction, but only if you meet a rigorous set of conditions known as the “objective requirement” test.

Since 2024, you cannot claim simply because you prefer working from home. You must prove that:

Written Evidence: You need evidence, like a clause in your employment contract, proving you are obligated to work from home.

It is not a choice: You must be unable to choose between working at the office or at home.

No facilities available: Your employer effectively has no space for you, or you live so far away (due to the nature of the job, not personal choice) that travel is unreasonable.

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Is There Any Way to Still Get Relief?

Yes, but it is no longer in your hands—it is up to your boss.

The government has left one door open: Employer Reimbursements.

Employers can still pay their staff up to £6 per week (or cover actual receipted costs) tax-free to cover homeworking expenses.

• The Old Way: You claimed the tax relief from HMRC yourself.
• The New Way (Post-2026): Your employer pays you the money directly. If they do, it is tax-free for you and free of National Insurance for them.

Action Tip: If you are required to work from home, now is the time to speak to your HR department. Ask if they plan to introduce a tax-free homeworking allowance to replace the relief you are losing.

Why is This Happening?

The government stated that this change is to “ensure fairness” and reduce the “administrative burden” on HMRC. During the pandemic, eligibility for this relief was widened, leading to confusion over who could claim. By removing the individual claim option, the government is shifting the responsibility to employers to decide who genuinely needs support for home office costs.

Timeline: What You Should Do Now

Since today is 15 December 2025, you still have a few months before the rules change.

1. Claim for the current year (2025/26): The rules don’t change until April 2026. If you are eligible right now (i.e., required to work from home), ensure you claim your £6/week relief for this final tax year.
2. Check previous years: You can backdate claims for up to 4 years. If you were required to work from home in previous years and haven’t claimed yet, do it before the window closes.
3. Plan for April 2026: Expect your take-home pay to drop slightly in the new tax year unless your employer steps in to fill the gap.

Summary Table: The Timeline of Tax Relief

Feature	2020–2024 (Pandemic Era)	2024–2026 (Current Era)	Post-April 2026 (New Era)
Who can claim tax relief?	Anyone required to work from home, even for one day.	Only those with no office available and strict contractual obligation.	NOBODY (Personal deduction abolished).
Can I claim if it’s my choice?	No.	No.	No.
Can my employer pay me tax-free?	Yes (up to £6/wk).	Yes (up to £6/wk).	Yes (Reimbursements remain the only option).

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