{"id":10395,"date":"2026-04-03T17:46:54","date_gmt":"2026-04-03T17:46:54","guid":{"rendered":"https:\/\/wangzhuan-idea.icu\/?p=10395"},"modified":"2026-04-03T17:46:54","modified_gmt":"2026-04-03T17:46:54","slug":"homeworkers-hit-by-axeing-of-tax-allowance","status":"publish","type":"post","link":"https:\/\/wangzhuan-idea.icu\/?p=10395","title":{"rendered":"Homeworkers hit by axeing of tax allowance"},"content":{"rendered":"<div>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2021\/05\/Working-mum-at-home-.png\" alt=\"home working\" class=\"wp-image-112655 lazyload\"\/><noscript><img fetchpriority=\"high\" decoding=\"async\" width=\"833\" height=\"572\" src=\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2021\/05\/Working-mum-at-home-.png\" alt=\"home working\" class=\"wp-image-112655 lazyload\" srcset=\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2021\/05\/Working-mum-at-home-.png 833w, https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2021\/05\/Working-mum-at-home--600x412.png 600w, https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2021\/05\/Working-mum-at-home--300x206.png 300w, https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2021\/05\/Working-mum-at-home--768x527.png 768w\" sizes=\"(max-width: 833px) 100vw, 833px\"\/><\/noscript><figcaption class=\"wp-element-caption\"><em>Homeworkers face a new expense<\/em><\/figcaption><\/figure>\n<p class=\"has-medium-font-size\">About 300,000 people working from home in the UK will lose their annual home working allowance in the coming financial year following a change that has drawn little attention.<\/p>\n<p class=\"has-medium-font-size\">The removal of the tax relief on non-reimbursed homeworking expenses could come as a financial jolt to those running a small enterprise, says <a href=\"https:\/\/www.azets.com\/en-uk\" target=\"_blank\" rel=\"noreferrer noopener\">Azets<\/a>\u2019 head of employment tax, Clair Williams.<\/p>\n<p class=\"has-medium-font-size\">\u201cThis 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,\u201d she said.<\/p>\n<p class=\"has-medium-font-size\">\u201cClaimants currently receive tax relief on up to \u00a36 a week, and receipts are not required by HMRC. Removal of this tax relief will mean basic rate taxpayers see a tax increase of \u00a362, and, at the higher rate, \u00a3124.<\/p>\n<p class=\"has-medium-font-size\">\u201cHowever, employers\u00a0can still reimburse employees for these costs, if eligible, without deducting income tax and National Insurance contributions.\u201d<\/p>\n<p class=\"has-medium-font-size\">Eligibility for homeworking expenses was widened in 2020 to 2021 and 2021 to 2022 to include employees who had to work at home because of the pandemic, rather than because of their specific employment duties.<\/p>\n<p class=\"has-medium-font-size\">Ms Williams said: \u201cCiting 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%, is already the highest in 28 years.<\/p>\n<p class=\"has-medium-font-size\">\u201cIt is also worth bearing in mind that local employers may come under pressure to change their policies on reimbursement to provide WFH staff with financial reassurance, and some staff don\u2019t have workplaces to go to because their employer doesn\u2019t actually have physical premises.<\/p>\n<p class=\"has-medium-font-size\">\u201cGetting rid of the measure will, based on HMRC\u2019s own calculations, save the Treasury \u00a3115 million over five years from introduction.\u201d<\/p>\n<p class=\"has-medium-font-size\">The removal of the tax relief was announced in the Autumn Budget last year but received scant attention.<\/p>\n<p class=\"has-medium-font-size\">\u201cWith so many policy announcements made then, this one perhaps fell through the cracks of general awareness,\u201d said Ms Williams.<\/p>\n<p class=\"has-medium-font-size\">\u201cThe estimated 300,000 people currently claiming for the tax relief can do so for tax year 2025-2026 and retrospectively for up to four previous tax years, but this will no longer be possible for the new tax year.\u201d<\/p>\n<p class=\"has-medium-font-size\">Some employees may inadvertently find themselves falling into a higher income tax bracket due to the ongoing freeze in tax bands, known as fiscal drag, warned Ms Williams.<\/p>\n<p class=\"has-medium-font-size\">\u201cWhilst the abolition of home working tax relief spells good news for the nation\u2019s coffers, it could well mean administrative headaches for businesses and a financial hit to WFH staff.\u201d<\/p>\n<p><!-- Simple Share Buttons Adder (8.5.3) simplesharebuttons.com -->           \t            <\/div>\n<p><script>\n!function(f,b,e,v,n,t,s)\n{if(f.fbq)return;n=f.fbq=function(){n.callMethod?\nn.callMethod.apply(n,arguments):n.queue.push(arguments)};\nif(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\nn.queue=[];t=b.createElement(e);t.async=!0;\nt.src=v;s=b.getElementsByTagName(e)[0];\ns.parentNode.insertBefore(t,s)}(window,document,'script',\n'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n fbq('init', '1192059580980274'); \nfbq('track', 'PageView');\n<\/script><br \/>source<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Homeworkers face a new expense About 300,000 people working from home in the UK will lose their annual home working allowance in the coming financial year following a change that&hellip; <\/p>\n","protected":false},"author":1,"featured_media":10396,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-10395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news"],"_links":{"self":[{"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=\/wp\/v2\/posts\/10395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10395"}],"version-history":[{"count":0,"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=\/wp\/v2\/posts\/10395\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=\/wp\/v2\/media\/10396"}],"wp:attachment":[{"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wangzhuan-idea.icu\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}