As full time employed many of us don’t take advantage of the tax reliefs available to reduce your tax liability. Most of us believe the tax deducted by your employer is full and final. We estimate that over million employees lose out because of this. Even If you have not done you can still go back and claim up to 4 years overpayment relief so it’s never too late. The process is very simple and can be done online in most cases. This article gives you a summarised list of some reliefs you might be missing out.
Uniforms, work clothing and tools
You may be able to claim tax relief on the cost of repairing or replacing small tools you need to do your job (for example, scissors or an electric drill), cleaning, repairing or replacing specialist clothing (for example, a uniform or safety boots)
Business mileage, fuel and electricity costs
You may be able to claim tax relief on fuel or electricity you use on business. What you can claim depends on whether you’re using your own or a company vehicle. You can’t claim for travelling to where you work unless it’s a temporary place of work. If you use your own vehicle for business, you may be able to claim ‘Mileage Allowance Relief’. Speak to your accountant who can work this out for you.
Travel and overnight expenses
If you have to travel for your work you may be able to claim tax relief on the cost of money you’ve spent on food or overnight expenses, called ‘subsistence’. You can’t claim for travelling to where you work unless it’s a temporary place of work. Expenses you can claim tax relief on from your business journey include: public transport costs, hotel accommodation if you have to stay overnight, food and drink, congestion charges and tolls, parking fees, business phone calls, fax and photocopying costs
Professional fees and subscriptions
You can reclaim tax on fees or subscriptions you pay to some approved professional organisations but only if you must have a membership to do your job or it’s helpful for your work.
Working at/from home
You may be able to get tax back for some of the bills you have to pay because you have to work at home on a regular basis. You can only claim for things to do with your work (for example, business telephone calls or the extra cost of gas and electricity for your work area). You can’t claim for things that you use for both private and business use (for example, rent or broadband access). You don’t need to provide records for claims of up to £4 per week (£18 per month). For claims over £4 per week, you’ll need to provide evidence of what you’ve spent.
Buying other equipment
In most cases, you can claim tax relief on the full cost of substantial equipment you have to buy to do your work. This is because it qualifies for a type of capital allowance called annual investment allowance. Claim in a different way for small items that’ll last less than 2 years, such as uniforms and tools.
Depending on the pension scheme used you may be eligible to claim additional relief for pension contributions you made through your employment scheme.
If your accountant has not already done its time you look elsewhere as he has not done justice to you. As part of our service for personal tax clients, we include unlimited tax guidance which covers all these reliefs saving you money and refunding any extra tax deducted by your employer.
Drop in for a chat and cup of coffee to see if we can help you.