Excellent work everyone, this is the updated list. Perhaps M and U could be improved on, or indeed any others.
A - avoid
B - bless, bout
C - cleft
D - nod, dismissing, dejected, awayday
E - ego, eloped
F - floss
G - gout, glossy
H - homeless
I - selflessly, non-current
J - jousted, jaywalking
K - OK
L - lout
M - meter running
N - taken off
O - loveless
P - disquiet
Q - Q-tipped
R - runaway, goner, riverless, rejected
S - slacking, slopes, squit, squash
T - not, toff, taxed, timeout
U - non-U
V - vex, vexed
W - wassail, waxed
X - bygone
Y - lefty
Z - sleepless, nosy (homophone)