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Employees may be eligible for tax relief on their work-related expenses

The HMRC has encouraged employers to look at the tax relief available for their employees advising that some workers may be able to get tax relief on expenses if the business has not already reimbursed them.

by | 7 Dec, 2022

The tax relief can be for things such as 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), and working from home.

The HMRC said anyone can check if they are 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, if they do not already have one and claim online.

It said there are companies who will make a claim on an individual’s behalf but the fees can be as high as 50 per cent of the refund and may also include an administration charge.

The HMRC warned these companies usually advertise on social media and online and the information individuals need to give to these companies is the same as if they apply directly to HMRC.

Employers can help their employees by making sure their own internal guidance and website are up to date and encourage workers to claim tax relief on work-related expenses via GOV.UK.

When reviewing internal guidance and website, the HMRC advises to refer to the official HMRC guidance on GOV.UK, promote the check what flat rate expenses you can claim tax relief on guidance on GOV.UK to employees, promote claiming Income Tax relief for your employment expenses on GOV.UK — refunds claimed online are usually quicker, meaning the employees will get their money back sooner, it’s eco-friendly and free, and to not make reference to taking printed or written claim forms to your local tax office, as this facility no longer exists.

If an employee is submitting a postal claim, HMRC only accepts claims made using the official form P87.

There are other ways to make sure employees get to keep more cash in their pockets, such as Tax-Free Childcare, Marriage Allowance, and Child Benefit.

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