Tax & Admin

How Do I Claim Tax Relief and How Does it Work?

Business Advice | 28 March 2023 | 1 year ago

A lot of people find themselves having to buy something for work at one time or another. This can be annoying, as it’s unlikely to be something that you would usually spend your money on. Thankfully, you could be eligible to claim tax relief on the expense.

What is Tax Relief on Work Expenses?

If you are an employee and you spend your own money on things related to your job – such as uniform, tools and mileage – you might be able to get tax relief. This is a tax refund for certain expenses incurred in the course of work, that you wouldn’t otherwise have had to pay for. It works by taking the amount of your expenses away from your total employment income, leaving you with a reduced taxable income. You are then taxed on your remaining income, minus the expenses, which could be a lot lower depending on how many work expenses you have. This lowers the amount of tax that you will have to pay, creating tax relief and saving you money.

What Kinds of Things Can I Claim Tax Relief For?

There is a lot of confusion about the kinds of things that you can claim tax relief for, and it’s important to be familiar with the rules. This will ensure that you are claiming as much tax relief as you are entitled to, without claiming for things that aren’t allowed. It’s important to remember that you can only claim for things to do with your work, and anything you buy that’s also used privately will not be allowed. Unless you can determine how much of the purchase is for work purposes and how much is for private use, you can’t claim tax relief.

There are a range of things that you can claim tax relief on including tools, supplies, fuel, professional subscriptions, business telephone calls, repairing or replacing uniforms, specialist clothing and costs associated with working from home. This is by no means a full list, and the things that you can claim tax relief for will vary depending on your industry and role.

How Do I Claim Tax Relief?

You claim tax relief via HMRC, which can be done online as part of your Government Gateway account. You will need to provide your employment details and information of what you want to claim tax relief for, and HMRC will determine how much tax relief this equates to.

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