The working from home allowance enabled employees to claim up to £6 per week without receipts, or actual costs with evidence. It was popularised during Covid.
However, the government has confirmed that the working from home tax relief will be abolished from April 2026. This allowance, introduced to help employees offset additional household costs such as heating, electricity, and internet when required to work remotely, will no longer be available.
This means that employees who work from home will bear the full burden of higher utility bills and other homeworking expenses.
In respect of employers, they can still reimburse staff for homeworking expenses tax-free, but this will now be at their discretion. Firms may face pressure to introduce or expand reimbursement policies to retain staff.
Further information can be found here.
19.12.25
