ATT Budget Representation - Working from Home Allowance.

The ATT has submitted an Autumn Budget 2025 Representation requesting that the Government consider increasing the Working from Home Allowance.

Due to significant increases in energy costs since 2021/22 and the recent increase in the Energy Price Cap (‘the Cap’), we have recommended that the Government should review the amount that employees working from home can be reimbursed/claim for additional household costs tax free. As part of our recommendation we requested an increase in the tax-free, fixed rate allowance of at least 2%, in line with the Cap increase and similar increases to the amounts that self-employed persons, working from home, can claim under the simplified expenses method.

We have suggested that increasing these allowances would result in fairer compensation for employees required to work from home and would make the simplified method a more attractive option for the self-employed, rather than the administrative burden of pro rating actual expenses.

We also requested that the rates are reviewed and updated on an annual basis.