Workers urged to claim cash back directly from HMRC
28 September 2018
HMRC is urging millions of UK employees to go online and directly check if they can claim extra cash back for work-related expenses.
Employees could be missing out on their full tax relief entitlement for work-related expenses by using agencies rather than claiming online.
According to HMRC some 85 per cent 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 on GOV.UK.
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 directly into their bank account.
Customers can also claim by post by printing off a form and 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).
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.
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