The relief, currently available to those required to work from home, has allowed employees to claim back small amounts of money to cover the costs of heating, electricity, and other work-related expenses. However, the government argues that too many claims were made by individuals who didn’t meet the necessary criteria. This change comes as part of a broader strategy to reduce national debt, but it risks putting additional financial strain on workers, particularly those who have no option but to work from home.
A Shift in Government Policy: The End of Flat-Rate Relief
According to government sources, the move to scrap the £6-a-week tax relief is part of a broader strategy to tighten fiscal policies and curb public spending. The flat-rate relief has provided simple, no-questions-asked support for remote workers, enabling them to claim back money for home-working costs without having to prove additional expenses. However, this system has faced criticism for being overly generous to those who did not need it.
From April 2026, the relief will be replaced with a more complicated system that requires workers to prove the exact additional costs of working from home. Workers will need to submit receipts or other forms of evidence for costs such as heating or electricity. For many employees, this will result in extra administrative burdens and make it harder to claim the relief, even though the cost of working from home remains high.
This change is expected to hit around 300,000 individuals who have relied on the relief in recent years. Those in lower-income brackets, especially, may find it difficult to cover the extra costs of working from home without the support of this flat-rate scheme. “It’s a further slap in the face for workers,” said David Stirling, financial adviser at Mint Wealth, in reaction to the announcement. “Remote workers, consider yourselves quietly squeezed by the chancellor.”
The Impact on Remote Workers and Small Businesses
The cancellation of the working from home tax relief is expected to have a significant impact on remote workers, many of whom are already facing financial pressures due to rising living costs. For some, the £6-a-week support has served as a small but necessary contribution towards higher home utility bills, a situation made worse by the shift to full-time remote work.
Financial experts are particularly concerned about the strain this will place on small businesses. Many employers have already faced challenges in managing remote working arrangements, and the new requirement for workers to provide evidence of additional expenses could add to the administrative load. This will hit workers “who have no office to go to or need adaptations just to work,” said Kate Underwood, HR consultant at Kate Underwood HR and Training. “They are already paying extra to heat the house and run the kit. That simple £6 a week was one of the few nods that working from home is not free.”
While some have defended the change as a necessary adjustment in light of the government’s financial strategy, others argue that it could have unintended consequences, particularly for disabled workers or those who rely on remote working due to childcare or other personal circumstances. According to research from Kings College London, more than half of UK workers would prefer to continue working from home, even if asked to return to the office full-time. The change in tax relief could undermine these preferences, potentially driving workers back into offices, despite a growing trend towards flexible working arrangements.
Looking Ahead: What Workers Can Do
Despite the looming changes, there is still an opportunity for workers to claim back tax relief for previous years. Workers who were required to work from home during the last four years but haven’t yet made a claim can still do so before the new rules come into effect. Those eligible for the relief should consult with their employers or financial advisers to backdate claims and ensure they aren’t missing out on the benefits while they are still available.
The UK government’s decision to scrap the flat-rate working from home tax relief is just one of many policy changes that are likely to affect employees in the coming years. While it is a small adjustment in terms of immediate savings, it may have wider implications for remote work in the long term. For now, remote workers will need to adapt to a more complex system of claiming expenses, while businesses will have to prepare for the administrative demands that will come with it.
