If you're working from home, whether full-time or part-time, your council may be able to reimburse you for some of the extra household costs you incur. These costs can include things like heating, electricity, or phone calls related to your job.

Councils are allowed to pay a tax-free homeworking allowance of:

£6 per week (or)

£26 per month

You won’t pay any tax or National Insurance on this payment if the following conditions are met:

You are required to work from home

This can be due to a formal work-from-home agreement, or temporary situations like lockdowns, office closures, or health and safety concerns.

The amount paid is reasonable

The council must ensure that the payment reflects the actual extra costs you face as a result of working from home.

The amount does not exceed HMRC’s limit

The maximum tax-free amount is £6 per week or £26 per month. If more is paid, the excess will be subject to tax and National Insurance.

If you're employed by more than one council, each employer can pay up to £26 per month tax-free, as long as:

They are satisfied that your total extra costs justify the combined payments.

You genuinely work from home for each employer.

This means you could receive more than £26/month across employers, as long as your overall additional costs support it.