If you’re employed and have expenses because of your job, you will normally be entitled to make a claim for work expenses on your taxes under PAYE.
How you claim expenses depends on the type of work expenses you have incurred, and the amount you are needing to claim back. There are two ways you can claim your work expenses on taxes, which are through correspondence under the PAYE system or by completing a self assessment tax return.
How to claim expenses under PAYE
Having work expenses which total less than £2500 per tax year, will mean you can make an expenses claim by way of a P87 form. The type of work expenses you are claiming will dictate what evidence you need to provide with your expenses claim.
How to claim expenses under Self Assessment
If your work expenses total £2500 or more per tax year, you will usually need to complete a self assessment tax return. The quickest and safest method to complete your tax return is online. When a tax return has been issued by the tax office you will have to complete it within a strict timescale, or you will be fined a late filing penalty.
What work expenses can I claim for?
Tax relief can be claimed back on several different kinds of work expenses and these include:
- Petrol expenses
- Travelling expenses
- Tool expenses
- Professional and Union fees
- Uniform laundering
Claiming work expenses example
Mr Dodd is salesman and is claiming petrol expenses because he uses his own car to travel to different temporary workplaces. His petrol expenses total £3300 which means the tax office require a self assessment tax return to be completed. Mr Dodd is a not a higher rate tax payer and gets 20% tax relief on his petrol expenses which means he should be entitled to a tax rebate in the region of £660.
How to claim your work expenses
You can use our free income tax rebate guides and tax refund FAQ’s to find out more about what expenses apply to you and how to make your claim with HMRC (tax office).
