The UK government is ending working from home tax relief for employees from April 2026, affecting around 300,000 workers who will face increased tax bills.
Stopping the working from home tax relief marks the end of a deduction that has helped remote workers offset additional household costs.
The removal will cost basic rate taxpayers £62 annually and higher rate taxpayers £124, making immediate action essential to maximise remaining benefits before this valuable relief disappears forever.
Employees will no longer be able to claim this relief from HMRC for extra expenses incurred while working from home after April 2026.
But we want to point out that claims for the last four tax years remain available. This makes it significant to act quickly before this window closes.
Key Takeaways
- Act quickly to claim relief for 2020-2025 tax years– you can still claim up to £312 annually before the window closes permanently
- Verify your tax code is correct– contact HMRC if working from home allowances remain in your code after April 2026 to avoid incorrect deductions
- Explore employer reimbursement options– companies can still provide tax-free payments up to £6 weekly for home working expenses after the relief ends
- Submit claims by key deadlines– 2020-21 claims must be made by 5 April 2025, with later years having extended deadlines
The HMRC working from home allowance allowed workers to claim £6 per week without receipts or actual costs with supporting evidence.
Then if you’ve claimed the working from home tax allowance before, verifying your tax code has been updated is vital.
We’ll guide you through claiming your final HMRC working from home tax relief and learning alternative options.
Working From Home Tax Allowance Ends in April 2026
The government has confirmed that from 6 April 2026, the home working tax relief will be removed completely for employees who claim directly from HMRC without employer reimbursement.
This legislative change inserts section 360B into Chapter 11 of Part 4 ITEPA 2003 and disallows deductions from earnings for additional household expenses incurred during employment duties.
The removal affects about 300,000 people across the UK. Basic rate taxpayers will face a tax increase of £62 each year.
Higher rate taxpayers will see their tax bills rise by £124. These figures represent the tax relief that was available through the £6 weekly deduction that required no receipts.
The relief covered costs including increased household utility bills and business telephone calls.
Employees could choose between claiming actual expenditure with supporting evidence or the simple flat rate.
The flat rate was introduced as an administrative easement at £4 weekly from the 2011 to 2012 tax year and rose to £6 from 2020 to 2021.
You can still claim for the current tax year and the previous four tax years, so quick action matters. Verify that your tax code has been adjusted if you’ve claimed this relief before.
Should your tax code still include the working from home allowance beyond April 2026, contact HMRC right away to prevent incorrect deductions.
How to Claim Your Final Home Working Tax Relief
Employees can claim working from home tax relief through two routes: from HMRC using their online portal or via employer reimbursement through salary.
The direct claim requires accessing the government’s online system and answering eligibility questions.
Then log into your Government Gateway account with your user ID and password to submit the claim.
Right now, you can claim for the current tax year plus the previous four tax years. Claims for 2020-21 must be submitted by 5 April 2025.
The 2021-22 claims have until 5 April 2026. Act fast to avoid missing these deadlines.
From 14 October 2024, HMRC requires supporting evidence for most employment expense claims. You must provide proof that your employer requires you to work from home.
This could be your employment contract or written confirmation. If claiming actual costs, submit receipts showing item names and payment proof.
But no evidence is required for the £6 weekly flat rate claims covering 2020-21 and 2021-22 tax years, as long as you were instructed to work from home due to COVID-19 restrictions.
For those completing self-assessment tax returns, claims must be included within your usual return.
Verify Your Tax Code Has Been Updated and Explore Alternatives
You should verify that HMRC has adjusted your tax code correctly after submitting your claim. Sign in to the Check your Income Tax online service to review your employment details, pension information and company benefits.
This online service is usually the quickest way to check and update your details.
HMRC has missing or inaccurate information about your circumstances if your tax code appears incorrect.
HMRC will modify your tax code and inform both you and your employer within 15 working days once you update your details.
The new code should appear on your next or following payslip for monthly-paid employees, whilst weekly-paid workers will see the change on their third payslip.
Speak with your employer to confirm they’ve received it should your payslip fail to reflect the updated tax code.
You can also contact HMRC’s Income Tax Helpline on 0300 200 3300. Have your National Insurance number, current tax code and employer details ready.
Discuss employer reimbursement with your company as well. Employers can still reimburse home working expenses without deducting Income Tax and National Insurance contributions.
This arrangement permits tax-free payments up to £6 weekly without supporting paperwork and provides an ongoing alternative beyond April 2026.
Next steps for remote workers
The abolition of working from home tax relief represents an important tax change for remote workers across the UK.
Time is of the essence. We recommend claiming for the last four tax years while the chance remains available.
Act quickly to prevent missing significant deadlines, especially for 2020-21 claims expiring on 5 April 2025.
Verify that your tax code has been adjusted if you’ve claimed this relief before.
If your tax code still includes the working from home allowance beyond April 2026, contact HMRC to rectify the situation and avoid incorrect deductions.
Working from Home Allowance Ends FAQs
Q1. Has the working from home tax allowance been discontinued? Yes, the working from home tax relief will be abolished from 6 April 2026. After this date, employees will no longer be able to claim a deduction from HMRC for additional household expenses incurred whilst working from home. However, you can still claim for the current tax year and the previous four tax years before this window closes.
Q2. Who is eligible to claim tax relief for working from home? You can claim tax relief if your employer requires you to work from home regularly. This includes situations where your job requires you to live far away from your office or your employer doesn’t have an office. You’ll need proof that your employer requires you to work from home, such as your employment contract or written confirmation.
Q3. How much tax relief can I claim for working from home? You can claim £6 per week without providing receipts, which translates to £62 annually for basic rate taxpayers or £124 for higher rate taxpayers. Alternatively, you can claim actual costs with supporting evidence if your expenses exceed the flat rate amount. The relief covers increased household utility bills and business telephone calls.
Q4. What is the deadline to claim working from home tax relief? You can claim for the current tax year plus the previous four tax years. Claims for 2020-21 must be submitted by 5 April 2025, whilst 2021-22 claims have until 5 April 2026. Acting quickly is essential to avoid missing these deadlines.
Q5. Will there be any alternatives after the tax relief ends in April 2026? Yes, employers can still reimburse home working expenses tax-free even after April 2026. Companies can provide tax-free payments up to £6 weekly without requiring supporting paperwork, and these reimbursements won’t be subject to Income Tax or National Insurance contributions. Consider discussing this option with your employer.
