HMRC believes some employees could be missing out on their full tax relief entitlement for work-related expenses by using agencies to make claims rather than claiming online.
Some 85% of eligible taxpayers currently pay agents to claim their money. But those who are paid through Pay As You Earn (PAYE) could claim the full amount of tax relief they are owed directly from HMRC. A simple Check if You Can Claim tool is available at: https://www.gov.uk/tax-relief-for-employees
If eligible, customers can log in to their Personal Tax Account to claim for their tax relief online and, if their claim is approved, be paid within three weeks.
Tax relief isn’t available for all employment expenses which is why the online Check If You Can Claim tool provides a means to check, make a claim and they the full tax relief is paid directly into your bank account.
The majority of claims are for repairing or replacing tools and branded uniforms, professional subscriptions and mileage. Healthcare workers, people in food and retail and those in the construction industry are among the top professions to claim from HMRC.
Customers may be able to claim tax relief on the cost of:
- repairing or replacing small tools needed to do their job (for example, scissors or an electric drill)
- cleaning, repairing or replacing specialist clothing (for example, a branded uniform or safety boots)
- business mileage (not commuting)
- travel and overnight expenses
- professional fees and subscriptions
In order to claim records need to be kept of expenditure and receipts, and claims must be made within four years of the end of that tax year. Eligible employees will be paid tax relief at the rate of pay that they pay tax. For example, if they spend £60 and pay tax at a rate of 20% in that year, the tax relief they can claim is £12.
Taxpayers can also claim by phone if their total expenses are less than £1,000 or £2,500 for professional fees and subscriptions. Call 0300 200 3300 (Monday to Friday: 8am to 8pm; Saturday: 8am to 4pm; Sunday: 9am to 5pm).