Working from home tax relief 2026-27: who can still claim
Last updated: October 20, 2026
By the Glasscubes editorial team
Short answer: from 6 April 2026, employees can no longer claim a tax deduction for the extra household costs of working from home — the old £6-a-week claim is gone (ITEPA 2003 s360B, inserted by Finance Act 2026). Employers can still pay up to £6 a week (£26 a month) tax-free to employees who regularly work at home under homeworking arrangements (s316A). The self-employed are unaffected: they can still use the simplified flat rates of £10, £18 or £26 a month (ITTOIA 2005 s94H), or claim a proportion of actual costs.
At a glance for 2026-27
| Who | What is available | Source |
|---|---|---|
| Employee claiming for themselves | No deduction for additional household expenses from 6 April 2026 | ITEPA s360B; EIM32759 |
| Employee paid by their employer | Up to £6 a week or £26 a month tax-free; more if justified by actual costs | ITEPA s316A; EIM01476 |
| Self-employed — simplified expenses | Monthly flat rate by hours worked at home | ITTOIA s94H; BIM75010 |
| Self-employed — actual costs | Business proportion of fixed and running costs | BIM47820 |
Self-employed flat rates
| Hours worked at home in the month | Flat rate for the month |
|---|---|
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 or more | £26 |
- Only hours spent wholly and exclusively on core business activities count: providing goods or services, keeping business records, and marketing or finding new business.
- Where several people work in the same home at the same time, each hour counts once. A partnership makes one claim based on its partners’ combined hours.
- Phone and broadband are not covered by the flat rate and are claimed separately.
Watch out for
- Claims for 2025-26 and earlier years are still made under the old rules. The change applies from 2026-27.
- Directors of their own companies are employees for this purpose, so the abolition applies to them. Payment by the company under s316A is the route that remains.
Sources
- ITEPA 2003 s360B — no deduction for homeworking expenses
- HMRC Employment Income Manual EIM32759
- HMRC Employment Income Manual EIM01476 — employer payments for homeworking
- HMRC policy paper: removal of tax relief on non-reimbursed homeworking expenses
- ITTOIA 2005 s94H — use of home for business purposes
- HMRC Business Income Manual BIM75010 — simplified expenses for use of home
- HMRC Business Income Manual BIM47820 — use of home, actual costs
Checked against the sources above on 16 October 2026. General information, not advice on a particular person’s position.
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