Thousands of workers across Merseyside could be overpaying on their taxes by hundreds of pounds each year, completely unaware of legitimate reliefs available from HM Revenue and Customs (HMRC). From the cost of washing a uniform to professional membership fees, these often-overlooked claims can put significant cash back into your pocket, especially as living costs remain high.
A tax expert has broken down five of the most common tax reliefs that people frequently miss, revealing simple ways to reduce your tax bill without needing to be a financial whiz. The key is knowing what you're entitled to, and the rules are often more generous than you might think.
Key Takeaways
- Many UK workers are missing out on tax reliefs for common work-related expenses.
- Claims can cover costs for uniforms, working from home, travel, professional fees, and specialist tools.
- Some reliefs can be backdated, potentially leading to a larger one-off repayment from HMRC.
- Understanding your eligibility for these five key areas could save you hundreds of pounds annually.
1. The Working From Home Allowance
The shift to remote work has changed the employment landscape, but many are still unaware of the financial support available. If your employer contractually requires you to work from home, you may be eligible for tax relief.
This isn't for those who simply choose to work from home a few days a week as a flexible perk. The crucial distinction is that it must be a formal requirement of your job, for example, if your company has closed its office or you were hired on a remote-only contract.
Who Qualifies for the WFH Allowance?
To be eligible, you must be required to work from home, not just choose to. This means your employer does not provide an office space for you, or your contract explicitly states your home is your workplace. According to tax expert Lee Murphy, this distinction is critical.
"If you are required to work remotely, and your place of work has no office or your contract states that you must work remotely, then you can claim a flat rate of £6 a week without needing to show any bills," explains Lee Murphy, Managing Director of The Accountancy Partnership.
This allowance is designed to help offset the extra costs incurred, such as higher heating, electricity, and internet bills. For a basic-rate taxpayer (paying 20% tax), claiming the £6 weekly flat rate amounts to a tax reduction of £62.40 over the year. It's a straightforward way to reclaim some of those added household expenses.
2. Professional Fees and Subscriptions
Are you a member of a professional body or a trade union that is essential for your job? The fees you pay for these memberships could be tax-deductible, a relief that countless professionals overlook.
This applies to a wide range of professions where maintaining a membership is either mandatory or a standard practice. For instance, nurses paying their annual Nursing and Midwifery Council (NMC) fee or engineers registered with a professional body can claim this relief.
Check Your Eligibility
HMRC maintains an official list of approved professional organisations and learned societies. Before making a claim, you should verify that your specific body is on 'List 3'. If it is, and you pay the fee yourself, you are eligible for tax relief.
The amount you can save depends on the cost of your subscription and your tax rate. "Of course, this varies industry-by-industry, but workers should typically be able to claim back £50-£150 each year," Murphy notes. It is important to remember that you cannot claim this if your employer has already paid for or reimbursed you for the subscription fee.
3. The Uniform Maintenance Allowance
If your job requires you to wear a specific uniform, whether it's branded clothing or a more traditional uniform like a nurse's scrubs, you can claim tax relief for the cost of washing, repairing, or replacing it.
This is one of the most widely applicable reliefs, yet it remains one of the most under-claimed. The logic is simple: if you must wear a uniform, the cost of its upkeep is a legitimate work-related expense.
Flat Rate vs. Actual Costs
There are two ways to claim this relief:
- Actual Costs: You can claim the exact amount you spent, but you must keep detailed records and receipts for all purchases and cleaning services.
- Flat Rate Expense: Most workers opt for this simpler method. HMRC has set a standard flat-rate amount for various occupations. For example, a standard rate is £60 per year.
"If you claim a flat rate expense of £60 and pay the basic tax rate of 20%, then you’ll pay £12 less tax,” Murphy clarifies. While this may seem small, it adds up over the years and can often be backdated for up to four years.
In a recent social media post, HMRC noted that people currently claim an average of around £125 for uniform-related costs, highlighting that many could be getting a significant amount back.
4. Tools and Specialist Equipment
For many tradespeople and professionals, providing their own tools and equipment is a non-negotiable part of the job. From hairdressers buying their own high-end scissors to mechanics investing in a comprehensive toolset, these costs can be substantial.
Fortunately, you can claim tax relief on the tools and specialist equipment you buy to do your job, as long as you need them and aren't reimbursed by your employer. The key condition is that the equipment is used exclusively for your work.
What Constitutes 'Specialist Equipment'?
This relief covers items that are necessary for you to perform your duties. This could include power tools for an electrician, knives for a chef, or specialised software for a designer. It does not cover items used for personal reasons.
"Again, this will vary person-by-person, but on average, we see workers claiming back around £50-£100 each year for this, as long as there isn’t significant private use,” says Murphy. Keeping receipts for these purchases is essential if you plan to claim the actual cost rather than a flat rate.
5. Work-Related Travel Expenses
This is a major area where employees can reclaim significant sums. The rule of thumb is that you cannot claim for your regular commute to your permanent place of work. However, you can claim for travel to temporary workplaces.
This includes journeys to:
- Client meetings at their offices
- Off-site training courses or conferences
- Team-building events at a different location
- Any temporary site that is not your usual place of work
Mileage Rates and Other Costs
If you use your own vehicle, the approved mileage allowance is generous. You can claim 45p per mile for the first 10,000 miles in a tax year, and 25p per mile thereafter. It's not just for drivers either; cyclists can claim 20p per mile.
Don't Forget the Extras!
Beyond mileage, you can also claim for other travel-related expenses like parking fees, congestion charges, and tolls. If you are required to stay overnight for work, you can claim for accommodation and meals, provided your employer hasn't fully reimbursed you for these costs.
"For regular travellers, this can easily be £150+ extra in your bank account each year,” Murphy highlights. Keeping a detailed mileage log and all relevant receipts is crucial for making a successful claim.