Tax relief on work related expenses | Moorepay

Payroll Legislation

Tax relief on work related expenses

Legislation

Tax relief on work related expenses

Date

Effective now

Summary

Employees may be able to get tax relief on expenses if employers haven’t already reimbursed them. This includes things like:

  • Uniforms and work clothing
  • Buying equipment
  • Professional fees and subscriptions
  • Using their own vehicles for work travel (this does not mean their journey from home to work)
  • Working from home

Anyone can check if they’re eligible to claim on GOV.UK and if they are, they can set up a Government Gateway user ID to access their personal tax account and claim online.

There are companies who will make a claim on an individual’s behalf. Their fees can be up to 50% of the refund and may also include an administration charge.

The benefit of applying to HMRC through GOV.UK is that individuals get to keep all the money they’re entitled to.

Update June 2024

When it comes to claiming tax relief on work-related expenses, understanding the details is key. 

Employees can benefit from tax relief on a range of costs, from repairing uniforms to professional subscriptions. But beware of the sharks in the water – some tax refund companies might lead you astray for their gain.

Protect your employees with making them aware of HMRC’s ‘Don’t Get Caught Out’ campaign and arm them with resources to claim work-related tax relief safely. HMRC have a tax relief for employees’ online tool and they are keen to make sure people are aware.

A tax refund company will be looking to make claims so they can gain their commission, which if isn’t accurate will lead to HMRC claiming this back from the employee.

The campaign HMRC are running aims to make sure this isn’t the case and that individuals are aware of what they can claim for and what they can’t.

Do look to see what you can do to promote this to your employees to ensure they are safe guarded. HMRC have packs which you can use to promote this campaign to staff.

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