With effect from the 2026-27 tax year there are changes to Company Directors and Employees can claim tax relief on costs of working from home.
Under current rules (2025-26 and earlier) there are two ways someone who was an Employee, including Company Directors, could get tax relief on working from home expenses:
- Reimbursement from Employer
- Claim on Self Assessment
If the person voluntarily worked from home, then only the first, Reimbursement from Employer, applied.
If the person was required to work from home, then if the Employer didn’t reimburse the Employee for home working, the Employee could claim the expenses on their Self Assessment.
In both cases the amount that could be paid was £6/week without evidence or a higher amount if the expenses were evidenced – but the eligible expenses for the later are quite restrictive, in essence metered electric and gas, and business phone calls.
From April 2026 if the amounts are not reimbursed by the employer then a free-standing claim on the Self Assessment cannot be made.
See our guide to Working From Home / Home As Office Expenses
Planning Points
The new April 2026 rules give rise to two planning points:
- Company Directors wishing to make a claim for Home Working costs should ensure their company specifically pays them the £6/week (it can be paid monthly of course) or such higher amount as meets the rules above.
- Employers with staff working from home should consider making payment to staff, as staff will no longer be able to claim on a free-standing basis.