UK removes homeworking tax relief from April 2026 – 300,000 workers affected

From 6 April 2026, HMRC will no longer allow employees to claim tax relief on non-reimbursed homeworking expenses – the £6 per week flat-rate claim that around 300,000 workers have been using. Basic rate taxpayers lose approximately £62 per year, while higher rate taxpayers lose around £124.

The change does not affect employer-paid homeworking allowances, which remain tax-free. But for remote workers whose employers don’t provide a specific allowance, this represents a small but real reduction in take-home pay. It’s a signal that the UK government views pandemic-era homeworking concessions as temporary rather than structural.

Remote workers in the UK should check whether their employer offers a homeworking allowance to offset the loss. Those who are self-employed are not affected – sole traders and limited company directors can still claim legitimate business use of home expenses through their tax returns.