Working from home: who pays for broadband?

With no general rule to lean on, start with what's written down for your job:

1. Your contract of employment. Look for your place of work, any homeworking or hybrid clause, and anything about expenses or equipment.
2. Your employer's homeworking, hybrid or flexible working policy. Acas suggests checking this policy, or asking your manager or HR, when you're arranging to work from home.
3. Anything agreed in writing since. Acas says that if your contract terms change, your employer must put the changes in writing within one month of agreeing them. If you've agreed a homeworking allowance, that confirmation is the place to see it.

Acas's advice to employers managing homeworkers also works as a script for the conversation. Beyond discussing extra costs, it says they should agree with staff what's needed to do the job, giving a reliable and secure internet connection as an example, and who will provide or pay for equipment and repairs. If your employer hasn't covered these points, it's reasonable to ask.

Until April 2026, some employees could claim tax relief from HMRC for extra household costs of working at home, often called the "£6 a week" claim. GOV.UK says that from the 2026 to 2027 tax year, which began on 6 April 2026, you can't claim it.

The change was announced at Budget 2025, in an HMRC policy paper published on 26 November 2025. HMRC's manual explains the mechanics: a new section 360B of the Income Tax (Earnings and Pensions) Act 2003 (often shortened to ITEPA) stops employees deducting additional household expenses from their earnings. The policy paper adds:

• Why it happened: HMRC said the aim was to tackle non-compliance, and that after checking claims it found over half were ineligible.
• Who it affects: HMRC estimated about 300,000 people, with a tax increase of £62 for basic-rate and £124 for higher-rate taxpayers.

Crucially, the change only removes relief for costs your employer hasn't reimbursed. HMRC says it doesn't affect employers paying back eligible homeworking costs without deducting Income Tax and National Insurance. The policy paper itself acknowledged employers may come under pressure to change their reimbursement policies.

Your employer can pay you towards the extra household costs of working at home without tax or National Insurance, under section 316A of ITEPA, if two conditions are met. HMRC's manual says there must be homeworking arrangements between you and your employer, and you must work at home regularly under them.

• They don't have to be in writing or apply to every employee.
• Hybrid and flexible working can count. HMRC accepts work at home is regular if it's frequent or follows a pattern, giving the example of three days at the employer's premises and two at home, even if the home days change from week to week.
• Informally taking work home in the evenings doesn't count.

HMRC has a page in its Employment Income Manual specifically about broadband (EIM01475), and it turns on one question: was the broadband an extra cost because of homeworking?

If your household already had broadband, a "broadband allowance" falls into the first row: it's still money towards your bill, but you get it after tax, through payroll.

One grey area: HMRC's general list mentions "increased charges for internet access" as a possible extra cost, while its broadband page says broadband you already paid for isn't additional. If your employer offers to fund a work upgrade, ask payroll how they'd treat it first.

HMRC's manual says section 316 exempts services an employer provides in your home solely for work, as long as private use is not significant. Where an employer provides internet access at home solely for work on a package with no separate billing, and no split between work and private use is possible, HMRC accepts it's exempt where private use is not significant and doesn't affect the cost of the package.

If an employer provides equipment or services for both business and private use, GOV.UK's employer guide says it must report them on form P11D (the form employers use to report benefits) and pay Class 1A National Insurance on the value. So if you're offered a work line, ask whether you're allowed to use it privately: the answer changes the tax treatment.

HMRC also treats the phone line separately from the internet contract, depending on who contracted for it. For a separate work connection, our guides to leased lines at home and home or business broadband explain the contract options.

These are made-up examples, not real cases or advice.

Example 1: hybrid worker with existing broadband. Priya works three days in the office and two at home under her employer's hybrid policy. She's had the same broadband contract for years. Her employer could pay her £6 a week tax free for extra household costs, because she has homeworking arrangements and works at home regularly. A separate "broadband allowance" would be taxed through payroll, because her broadband isn't an extra cost. She can't claim tax relief from HMRC for 2026 to 2027.

Example 2: new connection for a home-based job. Tom is hired into a fully home-based role and has never had home broadband, relying on his phone. He takes out a broadband contract because he needs it for the job. HMRC's broadband page says his employer can reimburse that fee tax free under section 316A, and GOV.UK's employer guide adds that it should be mainly used for business.

• Do I have homeworking arrangements in your eyes, and is that written in my contract or a policy?
• Do you pay anything towards homeworking costs? If so, is it the £6 a week (£26 a month) flat rate, a scale rate agreed with HMRC, or my actual extra costs?
• Will any broadband payment be paid tax free, or through payroll as earnings?
• Do you use section 316ZA for services staff take on for work, and what is your written policy on private use?
• Would you provide a work-only connection, and who would hold the contract?
• Who pays for equipment and repairs, and who do I tell if my connection fails?

If your employer also asks you to install security software or use a VPN on your home network, our guide to whether your employer can see your home internet use explains what that can and can't reveal.

If you end up paying for your own broadband, the most reliable saving is the deal itself. Check the end date in your contract. Under One Touch Switch you only contact the new provider, and your current provider must tell you about any early-termination charges that would apply. Our guides on end-of-contract notifications and haggling over your broadband price go through those steps.

Before paying for more speed because of work, run our broadband speed test from your desk, plugged in and on Wi-Fi, to see whether the line or your Wi-Fi is the weak point. If video calls are the worry, our guide to broadband for working from home sets out how much upload the main call apps ask for; when you look at deals, check the upload speed quoted for your address as well as the download.

When you're ready, compare deals at your postcode. We compare broadband deals through a partner's comparison service; you then order with the provider you choose. To see which networks reach your area, browse broadband deals by area or our list of UK broadband providers. Before ordering, read the contract summary.