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.

This is just one of several changes hitting UK remote workers this month – see our full guide to UK April 2026 employment rights changes: what remote workers need to know for the complete picture, including IR35 threshold shifts, day-one sick pay, and the new Fair Work Agency.