By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants. The Money Matters column appears in the Pembrokeshire Herald, the Carmarthenshire Herald and the Llanelli Herald newspapers.
The taxman at HMRC is reminding employees that they may be able to claim a tax rebate on their work-related expenses.
HMRC estimate that millions of employees, particularly those working in the service industry, could be entitled to a tax refund.
Workers, including nurses, hairdressers, construction workers and those working in retail and food sectors, may be able to claim tax rebates.
Individuals in these types of roles sometimes have to pay for work-related expenses including car mileage, replacing or repairing small tools, or maintaining branded uniforms.
Where these types of expenses are incurred, employees may be entitled to claim a tax refund.
HMRC is advising individuals to go directly to the Government website at GOV.UK to check if they can claim extra cash back.
If you need help with work-related expenses, then you can always contact the team at Carmarthen-based chartered accountants Cay Shaw Butler.
HMRC advise taxpayers to log in to their Personal Tax Account to claim their tax relief online and that approved claims should be refunded within three weeks.
The Financial Secretary to the Treasury, Mel Stride MP, said:
“We know what a difference tax relief can make to hard-working customers, especially at this time of year.
“HMRC is keen to make sure customers get all the relief they’re entitled to, by using the online service.”
Tax relief isn’t available for all employment expenses, so the online Check If You Can Claim tool is very helpful – then if your claim is approved, your full tax relief will be paid directly into your bank account.
The majority of claims are for repairing or replacing tools and branded uniforms, professional subscriptions and mileage.
Healthcare workers, people working in food and retail, and those in the construction industry are among the top professions to claim from HMRC.
HMRC is advising that taxpayers may be able to claim tax relief on the cost of:
- repairing or replacing small tools needed to do their job (for example, scissors or an electric drill)
- cleaning, repairing or replacing specialist clothing (for example, a branded uniform or safety boots)
- business mileage (not commuting)
- travel and overnight expenses
- professional fees and subscriptions.
Employees can check if they are eligible for tax relief on their expenses online.
Claims must be made within four years of the end of that tax year
Eligible employees will be paid tax relief at the rate of pay that they pay tax.
For example, if they spend £60 and pay tax at a rate of 20% in that year, the tax relief they can claim is £12.
Workers will need to have a Personal Tax Account.
Customers can also claim by post by printing off a form from GOV.UK, or by phone if their total expenses are less than £1,000, or £2,500 for professional fees and subscriptions.
Call 0300 200 3300 (Monday to Friday: 8am to 8pm; Saturday: 8am to 4pm; Sunday: 9am to 5pm).
Internet link for more information on the Government website GOV.UK news
You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) –
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