The Working From Home (WFH) tax relief scheme was introduced to allow employees who were contractually required to work from home to make a flat rate claim to help cover the extra household costs associated with working from home.
That was abolished from 6th April 2026 as HMRC stated there were high levels of non-compliance with over 50% of claims being ineligible. This is a loss of about £62 per year for basic rate taxpayers and £124 per year for higher rate taxpayers.
To try to fill this gap, you could ask your employer if they would pay you the WFH allowance directly. You’d need to have a formal homeworking agreement in place, otherwise the payments would be treated as a benefit-in-kind and be taxed accordingly.
Employers can reimburse evidenced additional household costs (e.g., utilities, business phone use) tax-free if necessary for the job. Mixed-use costs must be fairly apportioned They can also provide equipment (computers, furniture, etc.) tax-free if personal use is only incidental.
