Claiming Tax Relief for Work Expenses: A Guide for Employees

Understanding Tax Relief on Work-Related Expenses

Employees who pay out of pocket for work-related expenses may be eligible for tax relief—provided these expenses are not reimbursed by their employer. To qualify, the costs must be incurred wholly, exclusively, and necessarily in performing work duties or meeting specific deductibility rules, such as those for travel costs or professional memberships.

In 2023, HMRC introduced stricter evidence requirements for employment expense claims. While implementing these changes, they temporarily suspended their online claim service, requiring employees to submit claims via post using form P87. However, a new iForm was launched in December, allowing employees to claim online once again.

How to Submit an Online Claim

Employees can now submit tax relief claims through the new iForm on the Gov.uk website. However, the online claim option is only available for claims of £2,500 or less per tax year.

If the total expenses exceed £2,500, employees must claim through their Self Assessment tax return. Those who are already required to file a Self Assessment should also include their expenses claim within their return, regardless of the amount.

What Evidence is Required?

HMRC now mandates supporting evidence for all employment expense claims. The type of evidence needed depends on the nature of the claim:

• Professional Fees & Memberships – Provide a receipt or other proof of payment to the professional body.
• Mileage Claims – Maintain a mileage log detailing each trip, including start and end postcodes and the reason for travel.
• Working from Home Expenses – If claiming for additional household costs, submit a copy of your employment contract or another document proving you are required to work from home.
• Other Expenses – Submit a receipt, bank statement, or credit card statement showing the expense details and proof of payment.

Flat Rate Expenses

Claims for flat-rate deductions on uniforms, work clothing, and tools do not require supporting evidence.

Final Thoughts

The ability to claim tax relief online makes the process more convenient, but employees must ensure they provide the correct evidence to avoid delays or rejected claims. Keeping proper records will help streamline the claim process and ensure compliance with HMRC requirements.

Partner Note: ITEPA 2003 Pt. 5.

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