Millions of workers in the UK are missing out on tax reliefs worth hundreds of pounds a year, simply because they don't know they exist. Brits may be entitled to money back from HMRC, says Lee Murphy, Managing Director of The Accountancy Partnership, who is urging employees to take action now. "The rules are generous in some areas, and you don't have to be an accountant to benefit from these types of tax reliefs; you just need to know exactly what you can claim," he explained.
Mr Murphy has outlined the five most common tax reliefs that are forgotten about by the average British worker.
1. Remote workers can receive tax relief of up to £62 a yearIf you are required to work remotely, and your place of work has no office or your contract states that you must work remotely, then you can claim a flat rate of £6 a week without needing to show any bills, the expert said. This is to help you cover additional costs of heating, lighting and Wi-Fi.
This equates to £62 a year for a basic-rate taxpayer. However, this is only if your contract states that you are required to work from home.
If you have to pay a membership fee to be part of a professional body or trade union in your role, then you can claim this cost back.
Mr Murphy said workers should typically be able to claim back £50-150 each year.
For example, nurses that are paying the NMC fee or engineers who have to pay a membership to their professional body will be able to claim this back. If your employer has paid for this themselves, then you won't be able to reimburse this.
3. Wearing a uniform means you can receive tax relief of up to £60 a yearIf you're in a role that requires you to wear a uniform, then you can claim tax relief back for having to purchase this yourself.
You can either claim the actual amount you've spent on the items, or your role might have a 'flat rate expense', the expert said.
The tax relief will reduce the amount of tax you pay on the clothing. For example, if you claim a flat rate expense of £60 and pay the basic tax rate of 20%, then you'll pay £12 less tax.
4. Specialist equipment can get you £50-100 per year in tax reliefIf you work in an industry where you have to provide your own tools and specialist equipment, such as a hairdresser purchasing scissors or an electrician buying power tools, then you can claim this back.
If you're being asked to travel somewhere that isn't the place listed in your contract, then you're able to claim back either travel costs or mileage costs. If you use your car, then you'll be able to claim 45p back per mile for the first 10,000 miles and 25p after that.
Mr Murphy added that, even if you're not a driver, you can still claim if you cycle to any off-site visits. Cyclists can also claim 20p per mile.
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