300,000 working Brits will lose out on at least £62 in 2026 as the government scraps the work-from-home tax relief. Beginning in April 2020, towards the beginning of the Covid-19 pandemic , the tax relief became available to thousands of workers as offices shut. Working from home has become the norm for many businesses since the pandemic.

Basic rate taxpayers who work from home can now expect to pay an extra £62 per year as the tax relief is scrapped. Those on a higher rate will pay £124 more, while additional rate taxpayers will pay an extra £140. The flat fee, which allowed workers to earn £6 tax-free, was available to those who had no choice but to work from home. People who had the option to work from home but had an employer with an office could not claim it.

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