Are you missing out on claiming tax relief for expenses you have to pay for your job? There are plenty of flat rate expenses on offer to employees which you can claim for, and in this guide, we’re going to take you through everything you need to know. Let’s take a look at how to claim tax relief as an employee for your expenses – read on to find out more!

What are job expenses?

As an employee, your employer usually pays for everything you need. But what if they don’t? If you have to spend money on your own equipment to perform your job, you can make a claim for tax relief called flat rate or work-related expenses. Flat rate expenses is a term used to describe the standard flat rate you can claim for – or the actual cost – of the equipment you need.

Are you eligible?

OK, so HMRC have some basic rules in place to help employees determine whether or not they can make a claim. In short, there are two ways to identify whether or not you can claim tax relief.

First of all, you need to have used your personal money to buy things – such as protective equipment or small tools – to do your job. It is also important to remember that the rules state that you can only use this equipment for work – not for personal reasons.

Secondly, you won’t be able to claim tax relief if your employer pays you back for expenses. Also, you cannot claim for anything you use as an alternative. For example, if your employer has given you a hammer, you cannot claim for buying and using a different brand or type of hammer.

Finally, you must have already paid tax during the year that you are claiming. Your tax relief will be determined by the amount of money you have spent and your current tax rate. Let’s assume you are at the standard rate of 20% tax. If you buy a piece of equipment for £50, you can claim for 20% of the cost of that equipment – in this case, £10.

 

When can you claim?

As discussed above, you need to have paid tax already in the year you make a claim. However, you have four years to make a claim from the time you have spent the money. When you claim for the same year, HMRC will tend to give you your adjustments in your tax code so the money will be ‘paid’ back to you this way. For claims from the previous four years, however, HMRC will generally make an adjustment to your tax code, but they also might send you a tax return – you will need to fill it out and return it.

 

What are some examples of job expenses?

OK, so let’s imagine that you work for an employer who requires you to wear protective clothing to perform your role. While many companies will give you the relevant equipment, not all will – in some cases you may have to buy it yourself. It’s the same principal for uniforms, small tools, and specialist equipment – anything you have to buy to do your job.

Let’s say you are a building worker. Your employer might expect you to buy your own set of tools, and replace or repair them. You might also be required to clean, replace and repair the protective clothing you use – hard hats or hi-vis jackets, for example. And if you have to wear a set of specialised clothing – such as a uniform – then you also might be eligible for tax relief. Some good examples of uniform costs are nurses buying their scrubs, or restaurant workers buying their own uniforms. However, the rules state that tax relief is not allowed for uniforms that are simply clothing of a specific type or colour – you can’t claim if your boss wants you to wear blue t-shirts, for example.