If you are self-employed, then you are allowed to deduct business expenses from your income. You then only have to pay tax on the amount after expenses. If you are employed then most business expenses will be paid by your employer. However, where employees incur certain expenses and are not reimbursed by their employer they can claim tax relief. These are as follows

• Uniforms or safety clothing, such as steel toe-capped boots. 

• Business mileage in an employee’s car – This is at the standard rate of 45p per mile for the first 10,000 miles and 25p per mile thereafter in each tax year. If an employer reimburses mileage below these rates, the difference can be claimed.

• Travel and overnight costs – This only covers travel to temporary workplaces. Ordinary commuting costs are not eligible for relief.

• Professional fees and subscriptions – If an employee has a professional membership relevant to their work, then the fees related to that can attract tax relief. The list of professional bodies approved for this can be found on the HMRC website. – (tinyurl.com/pmywpef)

• Home working costs – If your job requires you to work from home on a regular basis you can reclaim the additional costs incurred as a result. If you are unable to identify the additional costs arising from home working, you can claim £4 a week without keeping any other records. This only applies if it is a requirement to work at home. If your employer simply gives you the option of working from home then you cannot claim any expenses. 

If you already complete a tax return, the claim can be made in that. If you have total expenses over £2,500 to claim, you will have to complete a return in order to claim. Otherwise you can claim online through a Government Gateway account at HMRC. (tinyurl.com/y4v8vre6)

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