Tax Relief For Expenses Of Employment Guide

Do you incur expenses because of your job? Chances are you’ll be able to claim tax relief.

If you’re an employee and have work based expenses that are not refunded by your employer, you could be eligible to reclaim tax relief on some of your expenses, such as your business mileage, or use of your home.

HMRC uses the term “expenses of employment” to cover the costs they allow you to claim tax relief on.

Our Tax Relief for Expenses of Employment Guide tells you which expenses you can include on your tax rebate claim and how to submit it to HMRC.

What expenses of employment can I claim for?

Many people don’t know what they are entitled to and miss out on their potentially valuable employment expenses tax relief.

Some common work expenses claims are:

  • Mileage and travel costs − using your own car or public transport when visiting temporary workplaces (not for normal commuting).
  • Tools and equipment – that you bought for work use.
  • Professional fees – if you’re a member of some professional bodies and unions.
  • Uniform tax relief − can be claimed on the cost of cleaning your own branded work wear or protective clothing.

You can use our free income tax rebate guides to discover more.

Who can claim tax relief for expenses of employment?

Anyone who is employed and has allowable employment expenses because of their job can make a claim.

To be eligible you must have paid income tax through your employment in the year(s) of your claim.

What you can claim tax relief for and how much you can claim depends on your personal circumstances.

What type of tax can I claim back from HMRC?

For employed individuals the type of tax you can claim back for employment expenses is income tax.

HMRC gives you tax relief which means you get some of the income tax (that you have paid through your employment) back as a tax rebate.

The value of the tax relief given by HMRC depends on what rate you pay tax. If for example you are a basic rate taxpayer you will be permitted tax relief at a rate of 20% or 40% if you pay tax at the higher rate.

As an employed person claiming back the VAT paid on employment expenses isn’t possible with this only be allowable for VAT registered businesses.

Expenses for employment time limit

You can apply for the overpaid income tax paid during the last four tax years which can add up to a sizeable tax rebate especially if you have more than one type of expense to claim back over multiple tax years.

How do I claim back my employment expenses? Form P87

Records are important, such as expenses sheets which show the number of business miles you have driven.

When dealing with an expenses claim you will come across an official HMRC form called a P87.

The P87 form is specifically for a claim that is worth less than £2500 and can be accepted by HMRC via an online or postal submission.

Completing a P87 is not the only way a claim can be made with a self assessment tax return being necessary in cases where a claim is worth £2500 or more or you already complete a tax return for a different reason.

Tax Relief for Expenses Calculator

Use our expenses tax relief calculator to work out how much you can claim

Just enter the rate at which you pay tax, and the total of your job expenses and the tax relief calculator will estimate what you can claim back.

Tax Rebate Calculator
How much could I claim? »

*This calculator only provides an estimate and doesn’t take into consideration any mileage paid by your employer.

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