Many workers across the United Kingdom could be missing out on hundreds of pounds in tax relief from HM Revenue & Customs (HMRC) each year. A tax expert has highlighted five common, yet often overlooked, areas where employees can claim back money for work-related expenses, including remote working, uniforms, and travel costs.
Understanding these allowances is crucial, as some claims can be backdated for several years, potentially resulting in a significant rebate. These reliefs are designed to offset costs incurred as part of your job, reducing your overall tax bill.
Key Takeaways
- Workers required to work from home can claim a flat rate of £6 per week.
- Fees for professional bodies and approved trade unions are tax-deductible.
- Costs for purchasing, cleaning, or repairing a mandatory work uniform can be claimed.
- Employees who buy their own specialist tools or equipment for work may be eligible for relief.
- Travel expenses for journeys to temporary workplaces can be reclaimed, including mileage costs.
1. Tax Relief for Mandatory Remote Work
The shift towards remote work has left many employees with higher household bills. HMRC offers a specific tax relief to help offset these additional costs, but eligibility is strict.
According to tax expert Lee Murphy, Managing Director of The Accountancy Partnership, this relief is not for everyone. It only applies if your employer requires you to work from home. This could be because your company has no physical office or your employment contract explicitly states your role is remote.
"If you are required to work remotely... then you can claim a flat rate of £6 a week without needing to show any bills. This should help you cover additional costs of heating, lighting and Wi-Fi."
Unfortunately, if you choose to work from home for convenience or as part of a hybrid arrangement, you cannot claim this allowance. The distinction is based on necessity, not preference.
How Much Can You Save?
Claiming the £6 per week flat rate can result in a tax saving of £62.40 per year for a basic-rate taxpayer (20%) or £124.80 for a higher-rate taxpayer (40%).
2. Claiming for Professional Memberships and Subscriptions
Many professions require membership in a professional body or trade union to maintain standards and licensing. If you pay for these fees yourself, you can claim tax relief on the cost.
This applies to a wide range of careers. For example, nurses paying their Nursing and Midwifery Council (NMC) fee or engineers maintaining a membership with their professional institution can claim this relief. The key condition is that your employer has not already reimbursed you for the expense.
Lee Murphy explains the potential value of this claim:
"This varies industry-by-industry, but workers should typically be able to claim back £50-150 each year."
HMRC maintains an approved list of professional bodies and learned societies for which subscriptions are tax-deductible. It is important to check this list before making a claim to ensure your organisation is included.
3. Allowances for Work Uniforms
If your job requires you to wear a specific uniform and you are responsible for its upkeep, you may be entitled to tax relief. This can cover the cost of purchasing, repairing, or cleaning the uniform.
A 'uniform' is typically defined as specialised clothing or items bearing a company logo that clearly identifies you as an employee. It does not usually include general clothing that adheres to a corporate dress code, such as a plain suit and tie.
There are two methods for claiming this relief:
- Actual Costs: You can claim the exact amount you spent, but you must keep detailed records and receipts.
- Flat Rate Expense: Many occupations have a pre-agreed flat rate amount that can be claimed annually without providing receipts. This simplifies the process significantly.
Understanding Flat Rate Expenses
HMRC sets standard allowances for various industries to cover uniform and tool costs. For example, a basic-rate taxpayer claiming a flat rate of £60 would reduce their tax bill by £12 (20% of £60). Rates vary by profession, so it is essential to check the specific amount for your role.
4. Reimbursement for Specialist Tools and Equipment
Similar to uniform allowances, employees who must purchase their own tools or specialist equipment to perform their job can claim tax relief. This is common in trades and certain creative professions.
Examples include a hairdresser buying their own scissors and clippers or a mechanic purchasing their own toolkit. The equipment must be necessary for your work, and relief is generally not available if the items have significant personal use.
"Again, this will vary person-by-person, but on average, we see workers claiming back around £50-100 each year for this," notes Murphy. As with uniforms, you can claim for the actual cost or use an industry-specific flat rate if one is available.
5. Expenses for Work-Related Travel
Commuting to your regular place of work is not tax-deductible. However, if your job requires you to travel to temporary locations, such as visiting clients, attending conferences, or working at different sites, you can claim for the associated costs.
This is one of the most valuable but frequently forgotten reliefs, especially for those who travel regularly.
Mileage and Other Costs
If you use your own vehicle, you can claim an approved mileage allowance. This is designed to cover fuel, wear and tear, and other running costs.
Approved Mileage Rates
- Cars and Vans: 45p per mile for the first 10,000 miles, then 25p per mile thereafter.
- Motorcycles: 24p per mile.
- Bicycles: 20p per mile.
In addition to mileage, you can also claim for other travel-related expenses like parking fees and road tolls. If you are required to stay overnight for work, costs for accommodation and meals can also be claimed, provided your employer has not already reimbursed you.
"For regular travellers, this can easily be £150+ extra in your bank account each year," Murphy highlights. It is essential to keep a log of your work-related journeys, including dates, destinations, and mileage, to support your claim.