Five Tax Reliefs You’re Probably Missing That Could Save You Hundreds

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. 

Lee Murphy, Managing Director of The Accountancy Partnership, online accountants for small businesses, contractors and freelancers, urges British 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.  

These are the five most common tax reliefs we see people forget about, and some people can get hundreds of pounds back per year that they’ve been missing out on.” 

Murphy addresses the five most common tax reliefs that are most forgotten about by the average British worker, which they could be entitled to just by ringing up HMRC.

1. Remote workers can receive tax relief of up to £62 a year 

“If 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. This should 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; unfortunately, if it’s your own choice, then you won’t be able to claim the additional allowance.” 

2. Professional fees and subscriptions can get you tax relief of £50-150 per year 

“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.  

Of course, this varies industry-by-industry, but 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. 

There’s a link on the HMRC website of approved subscriptions and professional bodies that will be entitled to this relief, before everyone starts subscribing to every newsletter they can think of!” 

HMRC: https://www.gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3 

3. Wearing a uniform means you can receive tax relief of up to £60 a year 

“If 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’ in which it’s worth checking beforehand. 

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 relief 

“If 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.  

Again, this will vary person-by-person, but on average, we see workers claiming back around £50-100 each year for this, as long as there isn’t significant private use.”

5. Work-related travel costs can get you £150+ in tax relief each year 

“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. 

This covers travel to client visitors, conferences, off-site meetings and even team-building events. Most people forget about the latter, but don’t forget to keep hold of any parking receipts too, which you can also claim. 

However, if you’re not a driver, then you can still claim if you cycle to any off-site visits. Cyclists can also claim 20p per mile! 

It’s also worth noting that overnight expenses when working away, if required to do so, can also be claimed. These can only be claimed if your employer hasn’t reimbursed you for this. However, if the employer has only reimbursed some of the expenditure, then the rest can be claimed from HMRC. 

For regular travellers, this can easily be £150+ extra in your bank account each year.” 

Ravish Magazine is the UK lifestyle magazine for modern inspiration across travel, food and wellbeing.