If you’re an employee in the UK, you may be able to claim tax relief on certain work-related expenses you’ve paid for out of your own pocket. These expenses can reduce your overall tax bill by deducting allowable costs from your taxable income. This comprehensive guide walks you through what qualifies for tax relief, how to make a claim, and key tips for getting it right.
What is Work-Related Tax Relief?
Tax relief on work-related expenses means you can reclaim some of the tax you paid on money spent to do your job. This applies if your employer has not already reimbursed you for those expenses. HMRC allows you to deduct qualifying costs from your taxable income, effectively reducing the amount of tax you pay.
Who Can Claim Tax Relief?
Only employees (not the self-employed) can claim work-related expenses tax relief. You must:
- Have incurred the expense wholly, exclusively, and necessarily for your work.
- Have paid for the expense yourself without reimbursement from your employer.
- Be able to prove that the expense was required by your job and not a personal choice.
Common Work-Related Expenses You Can Claim
Below are the most common categories of expenses that employees can claim tax relief on:
1. Professional Fees and Subscriptions
If you pay fees to a professional body or union necessary for your work (for example, the Law Society, ICAEW, or RCN), these are usually allowable. Check HMRC’s approved list to ensure your organisation is eligible.
2. Work Uniforms and Protective Clothing
If you have to wear a uniform, protective clothing, or specialist gear for your job and pay to clean, repair, or replace it, you can claim tax relief. However, you cannot claim for everyday clothing, even if you only wear it at work.
3. Tools and Equipment
If you need to buy small tools or equipment to do your job, and your employer doesn’t reimburse you, you can claim tax relief on these costs. Note that large capital items may require a claim under Capital Allowances, which is less common for employees.
4. Business Mileage and Vehicle Costs
If you use your own vehicle for work (excluding commuting), you may claim Mileage Allowance Relief. HMRC’s approved rates are:
- 45p per mile for the first 10,000 miles.
- 25p per mile thereafter.
This applies only to travel required by your job, not your regular commute between home and the office.
5. Travel and Overnight Expenses
If you have to travel for work (excluding regular commuting) and pay for accommodation, meals, or public transport, these expenses can be claimed. Make sure you keep receipts and records of your trips to support your claim.
6. Working From Home
If your employer requires you to work from home, you may claim a flat rate of £6 per week (or £312 per year) without providing receipts. If your costs are higher, you can claim the actual amount spent, but you must keep evidence to support the claim.
Expenses That Cannot Be Claimed
HMRC does not allow claims for:
- Normal commuting costs from home to your permanent workplace.
- Everyday clothing (even if you wear it only for work).
- Expenses paid by your employer or reimbursed.
- Meals or snacks you’d buy anyway.
How to Claim Tax Relief
Depending on the total amount of expenses you’re claiming and whether you already complete a Self Assessment tax return, you can claim in several ways:
1. Using HMRC’s Online Service
If your total claim is under £2,500 for a single tax year, you can claim tax relief through HMRC’s online service at gov.uk/tax-relief-for-employees. This is the easiest and quickest method.
2. Submitting a Paper Form P87
You can fill in a P87 form and post it to HMRC. This is suitable for claims up to £2,500 per tax year and is useful if you’re uncomfortable using the online system.
3. Via Your Self Assessment Tax Return
If you already complete a Self Assessment return (for example, because you have other income), you should include your work-related expenses in the relevant section of the return. There is no £2,500 limit here.
Information You Need to Make a Claim
Before making a claim, gather the following information:
- Your employer’s name and PAYE reference number.
- Details of the expenses incurred and amounts paid.
- Dates of any business journeys (for mileage claims).
- Receipts or other records to support your claim (not always required but advisable).
Backdating Claims
You can make a claim for the current tax year and up to four previous tax years. This means you can claim tax relief on eligible expenses you paid in previous years if you forgot or didn’t realise you could claim.
Record-Keeping Requirements
HMRC recommends keeping records of all expenses claimed for at least 22 months after the end of the tax year. If you file a Self Assessment tax return, keep records for at least five years after the 31 January submission deadline. This is important in case HMRC asks for proof of your claim.
Impact on Your Tax Code
Once your claim is processed, HMRC may adjust your tax code for the current and future tax years to reflect the relief you’re entitled to. This means you’ll pay less tax throughout the year rather than waiting for a refund after filing a return.
Getting Professional Help
If you’re unsure whether your expenses qualify or how to make the most of your claim, consider seeking advice from a tax adviser or accountant. They can help you navigate the rules and ensure you claim everything you’re entitled to without running afoul of HMRC regulations.
Conclusion
Claiming tax relief on work-related expenses is an excellent way to reduce your tax bill if you’ve paid for necessary items to do your job. By understanding what qualifies, keeping proper records, and choosing the right method to claim, you can ensure you don’t miss out on valuable tax relief. Remember, even small claims add up, and over time, they can make a real difference to your finances.
