If you’re an employee in the UK and you’ve paid out-of-pocket for certain work-related expenses, you might be entitled to claim Income Tax relief from HM Revenue & Customs (HMRC). Many employees are unaware that they could be missing out on valuable tax refunds simply because they haven’t submitted a claim. So, let’s look at what you can claim back when you work?
What is Income Tax relief?
Income Tax relief is a reduction in the amount of tax you pay based on job-related expenses you’ve incurred. However, it’s important to understand that tax relief is not automatic. You must actively make a claim to HMRC.
To be eligible, you must:
- Be a taxpayer.
- Have incurred the expense personally i.e. your employer must not have reimbursed it or paid it in the first place.
- Have incurred the expense “wholly, exclusively and necessarily” in the performance of your duties as an employee. i.e. there must not be a dual purpose.
- Be able to provide evidence (e.g., receipts, mileage logs) that proves the expense was incurred.
All claims must be submitted to HMRC either online, by phone, or by post. By far the easiest way and the one we would recommend is online. Have a look at online claim for work related expenses. You will need a Government Gateway login.
If you are not able to do it online, then you need to send a form P87 via the post. HMRC will not accept a letter. You will also need to submit the receipts as evidence.
We don’t recommend you call HMRC as the wait is normally horrendous, and there is no guarantee someone will be able to help.
Your claim must be within 4 years from the end of the tax year you are claiming for. What’s more the total you are claiming for must not exceed £2,5000 per tax year. If it does exceed this amount, you will need to complete a self-assessment for that tax year.
We can help you with your self-assessment. Have a look at how we can help you with your tax.
Common Work-Related Expenses You Can Claim
What you can claim back when you work. Here are some examples:
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Professional Subscriptions
If you’re required to be a member of a professional body or union to do your job, the cost of the subscription is often claimable. HMRC maintains a list of approved professional organisations. For example, engineers, accountants, teachers, and healthcare workers often need these memberships to maintain their qualifications.
Tip: Subscriptions must be directly relevant to your current role and not reimbursed by your employer.
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Mileage Allowance
If you use your personal vehicle for work (excluding commuting to and from your usual workplace), you can claim mileage allowance. HMRC allows a standard mileage rate currently 45p per mile for the first 10,000 miles in a tax year, and 25p thereafter.
If your employer reimburses you at a lower rate, you can claim the difference.
Example: If your employer pays you 30p per mile, you can claim an additional 15p per mile from HMRC.
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Hotel and Meal Expenses
When you’re required to stay overnight for work-related travel, you may be able to claim the cost of accommodation and meals. These expenses must be reasonable and necessary for the performance of your job duties.
Tip: Always keep receipts and note the purpose of your trip and the dates you stayed.
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Working from Home Expenses
If you work from home regularly (not just occasionally or voluntarily), you may be eligible for tax relief on some household expenses, such as heating, electricity, and internet usage.
You can either:
- Claim a flat rate allowance of £6 per week (£312 per year) without providing receipts, or
- Claim actual costs but only for the portion related to your work (with evidence).
Note: This applies only if your employer doesn’t already reimburse you for home working costs but requires you to work some of the time.
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Uniform and Work Clothing
If you’re required to wear a uniform, protective gear, or specific work clothing and you’re responsible for cleaning or replacing it you can claim tax relief.
This does not apply to everyday clothes, even if your employer requires you to wear a suit or business attire.
Example: Nurses, mechanics, and construction workers often qualify under this category.
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Other Expenses
Other claimable costs may include:
- Tools and equipment you need to buy for work.
- Travel expenses for temporary assignments.
- Business phone calls made from your personal phone.
- Specialist software required to perform your duties.
Important: All claims must be reasonable, clearly linked to your job, and not reimbursed by your employer.
What Happens After You Submit a Claim?
Once your claim is processed, HMRC will either:
- Adjust your tax code so you pay less tax in the future, or
- Send you a tax refund via bank transfer or cheque
Final Thoughts
Many employees often miss the chance to claim tax relief on legitimate job-related expenses. If you have been covering costs that support your work, such as driving your own car, paying for subscriptions, or working from home, it’s a good idea to review your situation and consider submitting a claim.
With a bit of paperwork and attention to detail, you might find yourself with some extra money in your pocket.
Here’s the full guidance on how to claim back the job-related expenses, including a downloadable version of form P87.
Myers Clark has been advising clients on self-assessment and claiming back repayments from HMRC for many years now. If you would rather enlist the help of a professional to claim back your tax refund, email us at enquiries@myersclark.co.uk.