Back to the Classroom with The Tax Faculty: Claiming Tax Relief on Workplace Expenses

A Simplified 10-Point Guide Explaining Workplace Expenses that offer Tax Reliefs

TAX TIPSRELIEFSEXPENSES

The Tax Faculty

1/14/20253 min read

1) What is Tax Relief?

Tax relief reduces your taxable income based on eligible work expenses you’ve paid for personally, as long as your employer hasn’t reimbursed you.

2) Who Can Claim?

Employees can claim tax relief for expenses that are necessary for their job and not for personal use. Self-employed individuals follow different rules.

3) Eligible Expenses

You can claim tax relief for:

  • Uniforms or protective clothing required for your job.

  • Tools or equipment necessary for your work.

  • Travel costs for business trips (not your commute to work).

4) Ineligible Expenses

You cannot claim for:

  • Commuting costs to and from your regular workplace.

  • Meals or accommodation unless incurred during business travel.

  • Clothing that could also be worn outside of work.

5) Uniform and Protective Clothing

You can claim tax relief for the cost of maintaining (washing, repairing) uniforms or protective gear. Flat-rate allowances may apply for certain jobs.

6) Tools and Equipment

If you’ve purchased tools or equipment specifically for your job, and your employer hasn’t reimbursed you, you can claim relief on the cost.

7) Business Travel Expenses

Claim relief for travel expenses, such as train tickets, fuel, or accommodation, incurred exclusively for business purposes. Always keep receipts.

8) How to Claim Tax Relief

  • For expenses under £2,500: Use HMRC’s online tool or submit a P87 form.

  • For expenses over £2,500: Complete a Self Assessment tax return.

9) Records You Need to Keep

Keep receipts, invoices, or evidence of payments. If claiming flat-rate expenses, you may not need detailed records, but they help in case of HMRC queries.

10) Flat-Rate Expense Allowances

Some professions (e.g., nurses, police officers) have pre-set flat-rate allowances for certain expenses. Check if your role qualifies.

At The Tax Faculty, we often hear from clients who are unsure about what workplace expenses they can claim tax relief on.

Today's guide explains how employees can claim tax relief for essential work-related expenses like uniforms, tools, and travel.

Claiming Tax Relief on Workplace Expenses

Understanding workplace expense claims can help you recover money you’re entitled to while staying compliant with HMRC rules. The Tax Faculty is here to simplify tax obligations and ensure you get the relief you deserve. Look out for more practical guides coming soon, tackling common tax issues with straightforward advice.

For personalised guidance, contact us today—we’re here to help you navigate the tax maze!

A Final Note

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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