Eight employment expenses you may be able to claim against tax

Many employees incur expenses doing their job that they don’t reclaim from their employer. You can reclaim these costs against tax going back up to 4 years. Here are some suggestions.

  1. Flat Rate Expenses by Occupation – HMRC have a list EIM32712 for example Healthcare staff in the National Health Service, private hospitals and nursing homes, uniformed ancillary staff: maintenance workers, grounds staff, drivers, parking attendants and security guards, receptionists and other uniformed staff – get a flat rate of £60 per year – this link explains how it works – Money Saving Expert
  2. Mileage in your own vehicle on business – if your employer pays you mileage already deduct the rate from 45p (40p before 2011) and 25p above 10,000 miles.
  3. Professional Subscriptions – if you personally pay for a professional subscription that you need for your work you can claim the cost against tax – here is a list of HMRC approved professional organisations.
  4. Traveling Costs – you may have business travel costs for hotels and meals that haven’t been reimbursed and these costs can be reclaimed against your tax.
  5. Working from Home – maximum of £4 per week
  6. Uniform not covered by a Flat Rate – read this blog.
  7. Training – where training is an intrinsic contractual duty of the employment (see also EIM32535 & EIM32546) and where any personal benefit, unlike most CPE/CPD courses, would be incidental and not, therefore, give rise to a dual purpose of the expenditure.
  8. Other costs – where the cost is wholly and exclusively for business

Form P87

If you are an employee use this form to tell HMRC about employment expenses you have had to pay during the year for which tax relief is due. Only fill in this form if your allowable expenses are less than £2,500 for the year. If your claim is more than £2,500 you will need to fill in a Self Assessment tax return. Please contact the Self Assessment Helpline on 0300 200 3310 or register at www.hmrc.gov.uk/online. You must fill in a separate P87 for each employment for which you are claiming. If you have not paid any tax during the year no refund will be due.

Noel Guilford, Principal at Guilford Accounting
Noel Guilford is the principal of Guilford Accounting a small business accountancy practice specialising in advising owner-managed businesses on current accounting, finance, and tax matters. You can reach him via email at noel@guilfordaccounting.co.uk or by phone at 01244 660866. He is the author of the 'Figure it out - an entrepreneurs guide to understanding your business numbers' which you can obtain by visiting guilfordaccounting.co.uk.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ His latest book, How to Build a Successful Business' will be published in 2018.

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