If you have to wash your own uniform or protective clothing, or spend money on tools or specialist clothing for your job, you will often be entitled to a tax rebate.
In many professions this tax relief available is deducted through flat rate expense allowances, this is also known as a ‘flat rate deduction’ and usually results in you being due a tax rebate.
Flat rate expense allowances are amounts that HM Revenue & Customs (HMRC) has agreed with trade unions or other bodies to cover what is typically spent each year by employees in various trades on such things as the cleaning, repair, replacement and cost of specialist clothing, tools and equipment.
The flat rate deduction is reflected an employee’s tax code, allowing them to earn more money before they have to start paying tax. For example a joiner who purchases their own protective clothing can claim flat rate expenses of £140 for the tax Y/E 5th April 2012. This means that they can earn £140 more a year tax free, once the flat rate deduction is applied.
Claiming tax relief through a flat rate deduction agreement means that you don’t have to provide receipts for any individual amounts you may spend. Additionally you do not have to be a member of a trade union to qualify for flat rate expense allowances.
To be eligible to make a flat rate expense claim you must earn enough money in a tax year to pay tax and your profession must have a flat rate expense amount agreed with HMRC.
If you have not already claimed the agreed flat rate amount for your profession, and the allowance has not been put into your tax code, you can potentially make a tax rebate claim for flat rate expenses for the last four tax years. Following a successful tax rebate claim, the agreed amount will be reflected in your tax code and you will pay less tax in future years.
For anyone who wears a uniform, which has a company logo on it, for their job, a laundry flat rate expense allowance is available to cover the cost of washing the uniform.
