HMRC allowance abolished from Monday April 6 2026 as 300,000 UK workers hit

HMRC allowance abolished from Monday April 6 2026 as 300,000 UK workers hitIt's worth as much as £124CommentsMoneySteven Smith Content Editor10:09, 04 Apr 2026View 3 ImagesThe perk is being abolished(Image: tattywelshie via Getty Images)A rule change means many UK workers will lose an HMRC allowance from Monday. Approximately 300,000 home workers across the UK are set to lose their annual home working allowance from Monday, April 6.Research conducted by Azets, an accountancy and business advisory firm, reveals that HMRC estimates the scrapping of this allowance for home workers will save £115 million over five years from April 2026.However, the removal of tax relief on non-reimbursed homeworking expenses could deliver a significant financial blow to many, according to Azets' head of employment tax, Clair Williams.She said: "This tax relief, in place for many years, covers an estimated 300,000 people who incur additional household expenses, such as heating, electricity and business phone calls, in their employment duties. Claimants currently receive tax relief on up to £6 a week and receipts are not required by HMRC."Removal of this tax relief will mean basic rate taxpayers see a tax increase of £62 and, at the higher rate, £124. However, employers can still reimburse employees for these costs, if eligible, without deducting income tax and National Insurance contributions."View 3 ImagesClair Williams, head of employment tax at Azets(Image: Azets)Eligibility for homeworking expenses was broadened in 2020 to 2021 and 2021 to 2022 to incorporate employees who were required to work from home due to the pandemic, rather than as a result of their specific job responsibilities.Clair said: "Citing concerns about non-compliance, which is shorthand for fake claims, the government is moving the cost responsibility to the private sector, where the business tax burden this year, at 32 per cent, is already the highest in 28 years."It is also wort...