26 November 2025
Within the plethora of further changes published in the Budget documentation shared after the Budget announcements, it has been confirmed that tax relief will be abolished on homeworking expenses when employees claim directly from the Government.
This does not stop employers reimbursing employees for these costs where eligible without deducting Income Tax and National Insurance contributions. This will be legislated for in the Finance Bill 2025-26 and take effect from 6 April 2026.
HMRC has published a policy paper this afternoon.
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