If you are employed, and this will include most directors, you can claim for expenses that you have paid for personally, to be set against your income liabilities for the relevant tax year.

You must keep records of the amount you have spent and make a claim to HMRC within four years of the end of the tax year that you spent the money.

For every £100 of expenses that you can claim you will receive a refund of:

  • £20 if you are a basic rate taxpayer,
  • £40 if you are a higher rate taxpayer, and
  • £45 if you are a higher rate tax payer.

What qualifies for tax relief?

  1. Uniforms, work clothing and tools
  2. Business mileage claim for use of your own car on company business (does not include home to work journeys)
  3. Other travel and overnight costs
  4. Professional fees required by your employment
  5. Certain costs for working from home
  6. Buying work related equipment
  7. Any other expenditure you have incurred for work purposes only

You can’t make a claim if these costs have been reimbursed by your employer.

For claims more than £2,500 you will need to submit on a self-assessment tax return.

For claims less than £2,500 you have three choices:

  1. If you already complete a self-assessment tax return use this to make the claim.
  2. Complete a form P87 and file online or by post.
  3. You make a claim by phone if you have made a successful claim in previous years and your expenses are less than £1,000 (or £2,500 for professional fees and subscriptions).

If your employer gives you a contribution towards any of these expenses, but does not cover the full cost, claim the difference.

And finally, if you make a claim you will only receive a tax refund if you have paid tax in the relevant tax year.

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