Overview
- HMRC’s flat-rate homeworking relief will be withdrawn for the vast majority of workers from April 6, 2026, confirming the policy set out in the 2025 Budget.
- Currently only employees required to work from home can claim, either at a flat £6 per week or for proven additional costs, with voluntary and hybrid arrangements largely excluded since 2022.
- Government forecasts suggest roughly 300,000 people will be directly affected when the relief ends.
- Typical losses are about £62 per year for basic-rate taxpayers and around £124 for higher-rate taxpayers.
- Employers may still reimburse homeworking costs tax-free if they choose, and the Budget also extended frozen income tax thresholds to 2030–31, which the OBR says will push more people into higher bands by 2029–30.