Cookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.
300,000 workers affected by scrapping of work-from-home tax relief
Newsletter issue – January 2026
Workers can currently claim either a flat £6 weekly allowance or actual additional costs, with claims backdated up to four tax years. From April 2026, employees will no longer be able to claim the £6 per week tax relief for home-working expenses. HMRC says the change is to address non-compliance - over half of claims checked were found to be ineligible. It is aiming to ensure fairness across the tax system.
HMRC estimates that around 300,000 employees will be affected by this change, resulting in basic rate taxpayers paying about £62 more per year, and higher rate taxpayers about £124 more.
However, employers can still reimburse home-working costs tax-free (no income tax or National Insurance deductions). So, businesses may need to decide whether to cover costs directly or risk losing staff who can't afford remote work.
Book a Free, No Obligation Consultation
Take advantage of a free consultation to see how you can benefit from using Stanhope accountancy and advisory and find out the best way to deal with your tax, accounting and how to minimise your tax liabilities. Book now >
Get a Fixed Quote
We believe you should always be in control of your finances. For this reason we can offer many of our services on a fixed fee basis on agreed services >
Profitability Strategies
We can help you develop strategies to help your business grow without increasing costs specialized tax incentives to produce multiple benefits and help you increase your profit >
Your Business
Expert tax planning advice any size business tailored to you >
