UK Working from Home Tax Relief 2026/27 Guide
Working from home tax relief 2026/27 - the employee claim ended 5 April 2026 (ITEPA s.360B). Employer payments stay tax-free and earlier years stay open.
What changed on 6 April 2026
Until 5 April 2026 an employee who was required to work from home could deduct the additional household costs under section 336 ITEPA 2003, either £6 a week or the exact extra amount (EIM32760). For 2026/27 that deduction no longer exists. Section 360B ITEPA 2003, inserted by Finance Act 2026 section 21, says no deduction from earnings is allowed for additional household expenses the employee incurs working at home (legislation.gov.uk; HMRC EIM32759).
Two routes remain. Your employer can pay you a tax-free homeworking allowance under section 316A (the £6-a-week guideline rate, or £26 a month, needs no justification). And if you were required to work from home in 2022/23 to 2025/26 and never claimed, those years are still open, with 2022/23 closing on 5 April 2027. Self-employed people are not affected: their use-of-home deduction is a separate trading rule.
Related guides + calculators
Frequently asked questions
Can I claim working-from-home tax relief in 2026/27?
Not as an employee. From 6 April 2026 section 360B ITEPA 2003 bars any deduction for the extra household costs of working at home, so the £6-a-week claim through HMRC has ended (HMRC EIM32759). Your employer can still pay you a tax-free homeworking allowance, and you can still claim for the 4 previous tax years if you were required to work from home then.
Why did the employee working-from-home claim end?
Finance Act 2026 section 21 inserted section 360B into ITEPA 2003, headed "Additional household expenses". It says no deduction from earnings is allowed for additional household expenses which the employee incurs in the performance of the duties of the employment at home, and it has effect for 2026/27 and later tax years. HMRC's manual (EIM32759) confirms that from 6 April 2026 a deduction is no longer permitted for an employee's additional household expenses, and that s.360B prevents a deduction under section 336 ITEPA 2003. It applies to every employee, including those with no office to go to.
Can my employer still pay me a working-from-home allowance tax-free?
Yes. The exemption for employer homeworking payments under section 316A ITEPA 2003 continues (EIM32759). Where you work at home regularly under arrangements with your employer, your employer can pay £6 a week, or £26 a month if you are paid monthly, without having to justify the amount, and you do not need to keep records (EIM01476). That rate is not a maximum: more can be paid tax-free if the employer can evidence the higher cost. Hybrid working can qualify if working at home is regular, for example 2 days a week (EIM01472).
Can I still claim working-from-home relief for earlier tax years?
Yes, within the time limit. GOV.UK says you can still claim for the 4 previous tax years, and the statutory limit is 4 years after the end of the tax year concerned (TMA 1970 s.43). During 2026/27 that means 2022/23 to 2025/26, with 2022/23 closing on 5 April 2027. Those years use the old test: you must have been required to work from home, not choosing to (EIM32760). You claim relief on £6 a week or the exact extra amount, and for 2022/23 onwards you must send evidence that you had to work from home.
Who qualified for the relief before 6 April 2026?
Only employees required to work from home. GOV.UK gives the examples of a job that requires you to live far away from your office, or an employer with no office. You could not claim if you chose to work from home, including where your contract lets you work from home some or all of the time, or where the office is sometimes full. HMRC's detailed conditions in EIM32760 include that the duties done at home are substantive duties, that appropriate facilities are not available at the employer's premises, and that at no time can the employee choose where to work.
What was the pandemic working-from-home treatment?
HMRC manual EIM32795 allows a deduction under section 336 ITEPA 2003 for certain household expenses where employees are asked to work from home during a pandemic on government advice, such as a full national lockdown or self-isolation. It is a section 336 deduction, so it can only be claimed for a year inside the 4-year time limit: during 2026/27 the earliest year still open is 2022/23 (TMA 1970 s.43), which means the 2020/21 and 2021/22 lockdown years are closed. From 2026/27, section 360B stops any deduction for additional household expenses of working at home.
How do I make a claim for an earlier year?
Use the online service on GOV.UK's working-from-home page, or post form P87 if your total job-expenses claim for the year is £2,500 or less and you are within 4 years of the end of that tax year. If you complete a Self Assessment return you must claim through the return instead, and a claim over £2,500 needs one. For a year already past, HMRC will either adjust your tax code or give you a refund. You cannot claim for costs your employer paid you back.
Does the change affect self-employed people?
No. Section 360B applies to employees' deductions from earnings. Sole traders and partners can still deduct the business proportion of home costs (HMRC BIM47820) or use simplified-expenses flat rates of £10 a month for 25 to 50 hours of business use at home, £18 for 51 to 100 hours and £26 for 101 hours or more. Company directors are employees of their company, so the employee rule applies to them.
Can I still claim other job expenses in 2026/27?
Yes. Section 360B only removes the deduction for additional household expenses. HMRC EIM32759 says it does not affect travel expenses under section 337 ITEPA 2003, including some travel from home to another workplace. Flat-rate expenses for uniforms and tools, approved professional subscriptions and mileage allowance relief are separate reliefs and continue.