Expenses: Navigate Your Tax Relief With Ease

As you work, it's not uncommon to incur expenses. Whether that's for travel, tools, or work clothing, these costs can add up quickly. Fortunately, tax relief for such employment expenses often provides a financial cushion ...

"It's crucial to note that there are specific conditions under which you can claim these expenses!"

Generally, the expenses must be necessary for your work and directly related to your employment duties. For instance, if you frequently buy equipment or uniforms essential for your role, you might be eligible for tax relief.

For claims made through the Pay As You Earn (PAYE) system, the procedures underwent a notable change last year. While you previously could make claims online, as of October the 14th, 2024, this option was removed, requiring employees to submit claims by post with supporting evidence.

Fortunately, there is good news for a change. Starting from October the 31st, 2024, you can once again file claims online for uniform, work clothing, and tool expenses. By December the 23rd, 2024, a new online Form will be available, enabling claims and evidence submission for all qualifying employment expenses online.

One significant aspect to bear in mind is that if you are required to file a self-assessment tax return, you must submit your claims through that route!

Additionally, if your total claim amount exceeds £2,500, this too must go through your tax return instead of the PAYE online system. The emphasis on accurately reporting your claims cannot be overstated, as HMRC has flagged growing tax risks related to ineligible expense claims. This is why gathering supporting evidence, such as invoices and receipts, is vital to successfully securing your relief.

As you prepare to make a claim, it's essential to understand that, currently, only you can file your claims online. If you have an agent helping you with your taxes, they will need to use a P87 paper form to submit your claims instead. This presents a slight inconvenience, but it empowers you to have greater control over your finances.

"Claiming tax relief for your expenses is an opportunity to alleviate the costs you incur for your job!"

By staying updated on the rules and changes, as well as understanding how and when to make your claims, you can ensure that you fully benefit from relief. Don't miss out on this chance to maximise your tax return.

Remember, being proactive and informed about your expenses will always pay dividends in the end.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.