Did you know?
You can claim Job related expenses if you are employed and you can go back 4 years!
Tax relief reduces the amount of tax you pay. If your employer pays all of your expenses, you cannot claim any tax relief but you may be able to claim tax relief on certain expenses if you are employed for the following circumstances:
1. You work from Home
2. Have a uniform, work clothes and tools
3. Use your own vehicle for work
4. Pay professional fees and subscriptions
5. Travel and work away from home
6. Spend your own money repairing/replacing small tools/ equipment to use for your job.
There are a few rules regarding this and therefore you must:
1. Have paid tax in the year you’re claiming for. You’ll get tax relief based on what you’ve spent and the rate at which you pay tax.
2. You have not been reimbursed directly for these costs from your employer. If your employer pays towards your expenses deduct the amount they pay to get the figure you can claim.
3. If you are not claiming under flat rate expense you will be required to have a receipt for this cost or be able to provide a record/evidence of the spend.
Example
If you spent £60 and pay tax at a rate of 20% in that year, the tax relief you can claim is £12 (20% of £60).
What is flat rate expenses
Flat rate expenses allow you to claim tax relief for a standard amount (a ‘flat rate’) each tax year. The amount you can claim depends on your job and the industry you work in.
If you are claiming a flat rate expense, you do not need to keep a record of what you have spent or any receipts. If however you are claiming for the actual cost for the expense you will need to keep a record (the best way to record the expense is the actual receipt).
How far back can you claim?
You can claim for this tax year and the 4 previous tax years so this could mean a few hundred pounds back in your pocket.
If you do not prepare a self assessment tax return HM Revenue and Customs (HMRC) will usually adjust your tax code so you pay less tax you can apply for this online.
If your claim is for previous tax years, HMRC will either adjust your tax code or give you a tax refund.
How do you claim?
If you prepare a self assessment tax return, you may choose to claim this on the employment section of your tax return.
There is a fantastic little checker to see if you are eligible that is published on HMRC website. Please just contact us and we will send you the official link. Unfortunately there are lots of internet scams out there and for cyber security reasons we do not want you to click on the wrong link – just complete the contact form on our website and we will be in touch with the link. No obligation whatsoever. We will be happy to help.
If you want to claim the exact amount you have spent on expenses you must keep receipts and make a claim by post.
You must claim tax relief by post if you’re claiming either:
• on behalf of someone else
• for more than 5 jobs
HMRC will only accept postal claims using form P87. Include all expenses for the tax year you want to claim for.
You can claim tax relief by telephone if you’ve already claimed the same expense type in a previous year and your total expenses are less than either:
• £1,000
• £2,500 for professional fees and subscriptions
You cannot claim working from home expenses by phone.
The telephone number is: 0300 200 3300
Or you can just……
Speak to an accountant
Speaking to an accountant more can really help you reduce your tax bills. By speaking to your accountant whether you are employed/self employed or running a business can be worth it. We will ask a host of questions to see if you have covered many items. We can get you thinking about things you may not have even thought about.
Speaking to your accountant will guarantee to add value and quite possibly could be the most profitable conversation you can have.
Give us a call to discuss further and see how we can help you cut your tax bill!