by Muhammad Shahid Aziz
If you’re a UK employee, you may be eligible to claim tax relief on work-related expenses that your employer hasn’t reimbursed. This can help reduce your taxable income and increase your savings. In this guide, we will discuss the various allowances available, including mileage, food, working from home, and professional fees. We will also provide a comprehensive table summarizing each category for your convenience.
What Are Work-Related Expenses?
Work-related expenses are costs incurred while performing your job duties, which your employer hasn’t reimbursed. HMRC allows you to claim tax relief on these expenses. The main categories include mileage allowances, uniform costs, tools and equipment, and work-from-home expenses.
Key Work-Related Expense Allowances (H2)
Below is a table summarizing the common expenses you can claim:
| Expense Category | Allowance Type | Allowance Rate/Amount | Eligibility Criteria | Documentation Needed |
|---|---|---|---|---|
| Mileage for Cars/Vans | Per Mile | 45p per mile (first 10,000 miles), 25p after | Business travel only, not daily commuting | Mileage log |
| Mileage for Motorbikes | Per Mile | 24p per mile | Business travel only | Mileage log |
| Mileage for Bicycles | Per Mile | 20p per mile | Business travel only | Mileage log |
| Food Allowance | Subsistence for Travel | Up to £5 (5-hour), £10 (10-hour), £15 (late meal) | For business travel and overtime meals | Receipts |
| Working from Home | Flat Rate | £6 per week (£26 per month) | Homeworking required by employer | None required for flat rate claims |
| Uniform and Protective Clothing | Flat Rate/Actual Costs | £60 to £140 annually (varies by industry) | Required uniform or work clothing | Receipts or flat rate claim |
| Tools and Equipment | Capital Allowance | 100% of cost (if used for business) | Essential for job performance | Proof of purchase |
| Professional Fees and Subscriptions | Membership Fees | Full cost if necessary for job role | Must be on HMRC’s approved list | Receipts or payment proof |
| Travel & Accommodation | Actual Cost | Reasonable hotel and travel expenses | For business trips only | Receipts |
| Incidental Overnight Expenses | Fixed Rate | £5 per night (UK), £10 per night (overseas) | For incidental costs during overnight travel | Not required if employer pays directly |
| Food and Drink (Overnight Travel) | Actual Cost | Variable based on actual expenses | For overnight business stays | Receipts |
| Capital Allowances for Large Equipment | Depreciation Claim | 100% via Annual Investment Allowance | Applies to large purchases like computers | Purchase records |
| Flat Rate Expenses by Industry | HMRC Approved Rates | £60 – £185 depending on the sector | Based on standard industry rates | None for flat rate claims |
| Laundry Costs for Uniforms | Fixed Rate/Actual Costs | £60 per year (average) | For cleaning required uniforms | Proof of cost if claiming actual expenses |
| Fuel for Company Cars | Advisory Fuel Rates | Varies by engine size and type | For company car use in business trips | Log of business miles and receipts |
| Eye Tests and Glasses | Actual Cost (Partial) | Partial or full reimbursement | If required for screen work | Proof of payment |
Tips on Claiming Work-Related Expenses
- Keep Records: Always keep receipts, invoices, and logs to substantiate your claims. This will help if HMRC requires proof of your expenses.
- Use Self-Assessment: If your total expenses exceed £2,500, you must file a Self-Assessment tax return.
- Adjust Tax Code: For recurring expenses, you can ask HMRC to adjust your tax code, so you receive relief throughout the year.
How to Claim Your Tax Relief
Employees can claim tax relief through:
- Self-Assessment Tax Return: Ideal if you have multiple expenses or if the total claim exceeds £2,500.
- P87 Form: For simpler claims, fill out a P87 form online or by post for amounts below £2,500.
- Adjusting Your Tax Code: If you have ongoing work-related expenses, you can request HMRC to update your tax code to reflect these deductions.
For detailed guidance on how to claim, visit GOV.UK – Claim Tax Relief.
Why It’s Important to Claim Your Work-Related Expenses
Claiming tax relief on your work expenses can reduce your taxable income, increasing your take-home pay. Even small claims like mileage and uniform costs can add up over time, offering significant savings.