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 ...
Remember, being proactive and informed about your expenses will always pay dividends in the end!
Understanding the process of claiming this relief online can significantly ease your financial burdens while ensuring you follow vital HMRC guidelines. Firstly, if your employer does not reimburse you for your job-related expenses, you could qualify for income tax relief.
"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. The online option was restored on October the 31st, 2024, allowing claims for uniform, work clothing, and tool expenses. From December the 23rd, 2024, a new online form became 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.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about efficiently claiming your work expenses, it could be a great idea to call me on 01908 774320 and let's see how I can help.
Don't forget to stay updated with our daily social media posts on Facebook.
Share the blog love ...
#Expenses #TaxRelief #PAYE #EmployeeRights #HMRC
About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.
