Are you claiming all of your tax reliefs as an employee?

Those in PAYE roles will often assume that their employer and the HMRC are taking care of any tax reliefs and other contributions that need to be accounted for. And in most cases, this is true. However, the HMRC can only factor in what they know and there are a number of tax reliefs that PAYE employees are entitled to claim for but don’t realise.

Many employees assume that most tax reliefs only apply to those who are self-employed or business owners, but there are a number of work-related expenses that employees can claim for which are largely left unexplored.

If you have ever paid for something out of your own pocket that was an expense related to your role, it is worth checking whether tax relief may be available. Employee tax reliefs are one of the most overlooked ways employees can reclaim money from HMRC, simply because most people don’t realise they can claim.

With many employers thought to be leaving hard earned money on the table, Susan Perry from Cooper Accountancy lists the five most common employee allowances and tax reliefs people often miss:

Uniform allowance

If you wear a uniform for work you may be able to claim tax relief towards the cost of washing, repairing or replacing it. This is applicable to industries such as healthcare, construction, hospitality, security and transport, where employees are expected to wear branded or protective clothing.

The uniform must be required for your role and recognisable as workwear. It doesn’t stretch to wearing everyday clothing, even if you only wear it for work.

Membership fees

If you personally pay for subscriptions or memberships to professional organisations that are relevant to your job then you may be able to claim tax relief on those costs. HMRC maintains an approved list of professional bodies and organisations so it’s worth checking to see if yours is on the list.

Equipment expenses

If you have bought specialist tools required to do your job then you may be eligible to claim tax relief on them. This will most commonly apply to tradespeople that need specialist tools but also people that have office-based roles where equipment such as desks and computers are needed.

Working from home costs

If you are required to work from home and incur additional household costs such as gas and electric you may be able to able to claim relief on these. HMRC has a set amount you can claim, check their website for the most up to date information. If you choose to work from home voluntarily you will not usually qualify.

Mileage and work-related travel

If you use your own vehicle for work-related travel like visiting clients, then you may be able to claim tax relief on mileage costs. This is one of the most commonly overlooked reliefs, particularly for employees who regularly travel for work but assume occasional journeys are not worth claiming for.

Claiming

You can claim for tax relief through your personal tax account with the HMRC or by completing a P87 form. Gather any supporting evidence such as receipts, invoices, mileage records or details of professional memberships. If you are unsure what you can and can not claim for an accountant can help. Of course you must remember that you can only claim these reliefs if your employer hasn’t already reimbursed you for these.

The good news is that many of these reliefs can also be backdated for up to four tax-years so you could be entitled to more than you think.

Many employees will overlook these tax relief simply because they assume the amounts involved will be too small or the process will be complicated. In reality, thousands of people are likely to be missing out on money they don’t realise they are entitled to reclaim. Even small allowances can add up over the years.

If you regularly spend your own money on costs linked to your job it’s worth checking whether tax relief will apply. You could be entitled to quite a bit back.