You can apply for a tax refund if you use your own money to buy items or services for work or you need to work from home.
You can get a tax refund on:
1. Work from home
2. Uniforms, work clothing and tools
3. Vehicles you use for work
4. Professional fees and subscriptions
5. Travel and overnight expenses
6. Buying other equipment
How do I check if I am entitled to a tax relief?
Check here if you can claim work related expenses
What do you need?
Government Gateway Account.
If you do not have one, you will need:
➡ National Insurance numer
➡ Last payslip or P60 or passport
It takes about 10 min.
In order to be eligible for a tax refund, you must meet several conditions.
Working from home
👉 If you are "forced" to work from home because, for example, a shop or office where you work has been closed due to a pandemic.
👉 You are in quarantine
👉 Your permanent workplace is at home - you don't have an office
👉 Your boss hired you to work from home
👉 Working from home is not your choice
Then you can apply for a tax refund.
How much will I get?
➡ £6.00 weekly- from 6th of Aprill 2020 or £4.00 weekly from earlier years
or
➡ the actual costs you incurred for working from home, such as water, electricity, gas, home insurance, internet, and business telephone bills.
You cannot deduct rent, mortgage or council tax bills.
Sample
If you pay the standard tax rate of 20% and apply for a minimum of £6.00 a week, you will receive a tax refund of £1.20 per week. (20% of £6.00 is £1.20)
Uniforms, work clothing and tools
You can get the tax relief if you have incurred the following costs:
👉 purchase or repair of small tools necessary for the work, e.g. scissors, drill
👉cleaning (washing), repairing or replacing work clothes, e.g. uniform or safety shoes
Tax Relief is not due on PPE (Personal Protective Equipment)
This type of clothing must be provided by your employer or reimbursed directly for the purchase.
How much will I get?
➡ the actual cost you incurred
or
➡flat rate expense - check here
Sample
You pay the standard tax rate of 20% and work as a carpenter. You take advantage of the flat rate expense discount - for a carpenter the relief is £140 per year, so you will receive a tax refund of £28 (20% from £140 is £28)
Vehicles you use for work
You can claim tax relief if you use your car, van, motorbike or bicycle for a business trip.
Traveling from home to work is not a business travel , unless you are going to a temporary workplace.
How much is the relief?
➡ percentage of business travel from actual costs, e.g. for fuel, repairs, MOT, road tax
or
➡ fixed rate, depending on vehicle and miles driven
Fixed rate
Up to10,000 mil Over 10,000 mil
Vehicle 45p 25p
Motor 24p 24p
Bike 20p 20p
Remember that you must keep records of business journeys.
Professional fees and subscriptions
If your work requires a license and / or certificates, you can deduct the cost of their fee from your income.
You can find a list of professional organizations approved by the office here
Travel and overnight expenses
You can claim a tax relief if you travel for business purposes or to a temporary workplace.
What can I claim on?
👉 public transport costs.
👉 hotel accommodation if you have to stay overnight.
👉 food and drink.
👉 congestion charges and tolls
👉 parking fees
👉 business phone calls and printing costs
Buying other equipment
In most cases you can claim tax relief on the full cost of substantial equipment, for example a computer, you have to buy to do your work.
Remember that you have to pay some tax to get a tax refund. If you have not paid any tax in tax year, then tax relief does not apply to you.
Sample
👆 In Tax Year 2019/20 you earn £30,000
You paid £3,500 of tax
You make a claim relief on:
▶ Business trip - 2000 mils = £900 (2000 * £0.45 = 900)
▶ Cleaning uniform £60
Total claims; £960 (900 + 60)
You will get £192 tax refund (£960 * 20% = £192)
👆 In tax Year 2020 you earn £12,000
You cannot claim any tax relief as you did not pay any tax. Your income is below tax free allowance of £12,500
Do I have to keep any record?
Yes and no.
▶ Yes, if you are claiming actual cost, you must keep receipts and bills.
▶ No if If you are using a flat rate expense.
The employer reimburses me part of the cost. Can I still apply for a tax refund?
Yes and no.
▶ No, if the employer reimburses you in full for the costs incurred.
▶ Yes, if the employer reimburses you a part of the amount, you can apply for the difference.
Sample:
You want to claim for business trip of 2,000 mil
Employer reimburses you £0.40 for a mile
You can claim another £0.05 for a mile as the stadard rate is £0.45/mil