Tag: Work-related expenses

No frosty surprises when you claim tax relief directly with HMRC

Every penny counts at Christmas and employees eligible to claim a tax refund on any work-related expenses are being urged to do it directly through HM Revenue and Customs (HMRC) to guarantee receiving 100% of their claim.

Whether working in hospitality or retail, taking on a seasonal second job as a delivery driver, or even becoming Santa’s elf for the month, the most straightforward way to claim – and keep – all of a tax refund is through HMRC’s online service. A claim takes just 15 minutes.

Employees can use the online service to check eligibility and get a full list of work expenses they could claim a tax refund for, including: 

  • cleaning, replacing or repairing a uniform or work clothing
  • using their own vehicle for work including business mileage
  • professional subscriptions they’ve paid for, that are needed to do their job.

Suzanne Newton, HMRC’s Interim Director General for Transformation, said: “Christmas can be an expensive time of the year and for many, it could be a good opportunity to claim a tax refund on work expenses to boost finances.

“Latest figures show the average claim is £125 a year. But the only way to guarantee receiving 100% of your eligible refund is by claiming direct through HMRC. Just search ‘tax relief for expenses’ on GOV.UK to find out more.”

Once customers have signed into the HMRC service, they just need to follow the simple step-by-step guidance to submit their claim. Those who need to set up an account can do so quickly and easily via GOV.UK.

Customers considering using an agent to make their repayment claims are likely to be charged a fee – in some cases up to 50% of the value of the claim. If the claim is then found to be ineligible, customers are liable to pay back the full amount of the refund, not the amount they finally received, so could end up out of pocket.

While going through an agent may seem like a simpler option at first, customers will need to supply the agent with the same information they would use to make the claim themselves using HMRC’s free online service.

Anyone who does, nevertheless, choose to use an agent to make a claim on their behalf should also check the small print before signing a contract – including researching the company so they understand what commission is being charged and how much of their tax refund they are likely to receive back. 

More information about how to make a work-related expense claim and what type of expense can be claimed is available at GOV.UK. 

HMRC customers in Scotland encouraged to check out financial support available to them

Customers in Scotland are being encouraged to check online for the range of financial support available from HM Revenue and Customs (HMRC) to help with living costs.

HMRC has listed the support available in one place to ensure people are not missing out and can easily find out online if they are eligible and how to claim.

The new GOV.UK page pinpoints people to a one-stop shop of all the benefits, credits and allowances available to individuals and families, making it easier than ever for people to claim what they are entitled to.

This includes:

Child Benefit

Child Benefit can be claimed if someone is responsible for bringing up a child who is:

  • under 16
  • under 20 if they stay in approved education or training

Only one person can get Child Benefit for a child. It’s paid every 4 weeks and there’s no limit to how many children you can claim for.

Tax-Free Childcare

Working parents can get assistance of up to £500 every 3 months (up to £2,000 a year) for each of their children to help with the costs of childcare until the September after their 11th birthday. If a child is disabled, this goes up to £1,000 every 3 months until the September after their 16th birthday (up to £4,000 a year).

Marriage Allowance

Marriage Allowance allows individuals to transfer 10% (£1,260) of their personal tax allowance to a husband, wife or civil partner if they earn less than the personal tax allowance, which is usually £12,570.

Work-related expenses and uniform allowances

Tax relief can be claimed on money spent on things like work uniform and clothing, tools, subscriptions or business travel.

The GOV.UK page also includes guidance for those on a low income wanting to make the most of their savings and help for those struggling to pay their tax bill.

Myrtle Lloyd, Director General Customer Services Group, HMRC: “We understand these are very difficult times for many so it’s vitally important we continue to highlight the range of support available.

“We’d encourage those who think they may be eligible for support to take a look and claim what they’re entitled to – it could make an important difference to household budgets at a time when it’s needed the most.”

Additional online tools and guidance are available to help customers check if they are eligible for each service – as well as extra support to guide them through the application process.