If you're an employee or a director, there are a number of 'tax deductible' expenses you might be able to get. These include the cost of professional fees or subscriptions, business travel and subsistence, tools and specialist clothing. You can backdate most claims for up to six years.
You can only get tax relief for allowable expenses. Expenses are allowable if they're for the cost of:
You can't ask for tax relief if your employer has already reimbursed you for the expense and has agreed a 'dispensation' with HM Revenue and Customs (HMRC).
You can find out more about the types of expenses that you can get relief for using the link below.
How you get tax relief for your allowable work expenses depends on whether or not you fill in a Self Assessment tax return.
If you don't have to fill in a tax return, you can get tax relief for your allowable expenses by:
The first time you ask for tax relief for your expenses you'll have to contact HMRC in writing. If your expenses are over £1,000 you will be asked to fill in form P87 to give more details about them.
If you phone HMRC to ask for relief for your expenses, they will be able to give you tax relief if all of the following conditions are met:
If you meet the conditions, and they haven't already sent you form P87, they will give you tax relief right away and repay any tax you've overpaid. Otherwise, you'll have to fill in form P87 before they can allow your claim.
If you don't have to fill in a tax return each year, HMRC may still need to check your income every so often to make sure you don't pay too much or too little tax. HMRC do this by asking you to fill in form P810.
When you fill in form P810 you can use it to ask for tax relief for your allowable expenses. If your expenses are over £1,000, they will ask you to fill in form P87 as well to give more details about your expenses.
HMRC will send you form P87 if any of the following apply:
The form asks for details about your expenses and how you worked out the amount you want to claim.
If you have more than one job, or if you change jobs during the tax year, you'll need to fill in a separate form P87 for each job. If you don't fill in form P87 after you are sent one, they won't be able to allow your expenses claim. This means that you might pay too much tax.
You may have to fill in a tax return if:
You can claim tax relief for your allowable work expenses on the employment page of the tax return.
If you claim tax relief for your allowable expenses on your tax return, you don't need to complete form P87.
The way that you'll get relief for your work expenses depends on the amount of your claim.
If your claim is £2,500 or less, HMRC will normally give you relief for your expenses through your tax code straight away. If you claim an estimated figure, they will review it at the end of the year, making any adjustments that are needed in your tax code for the next tax year.
If your expenses claim is for more than £2,500, they will give you relief in your tax code for the current year and for the next one - and send you a tax return to fill in, and also check your tax calculation for the previous year.
Money, tax and benefits
