Claiming tax relief for expenses online

Employees who incur expenses in undertaking their job may be able to claim tax relief for those expenses where they are not reimbursed by their employer. The expenses will qualify for relief if they are incurred wholly, exclusively and necessarily in the performance of your duties. If you’re eligible, claiming tax relief online through HMRC’s Self Assessment system is straightforward and can put money back in your pocket. This guide explains what you can claim, how the process works, and the current thresholds that apply.

What expenses can you claim?

HMRC allows tax relief on a range of work-related expenses, provided they meet the strict criteria of being wholly and exclusively for work purposes. Common examples include:

• Professional fees and subscriptions – membership of professional bodies relevant to your role
• Uniforms and protective clothing – but only if they’re specialised and not suitable for everyday wear
• Home working costs – a flat rate of £6 per week (or £26 per month) if you work from home, or actual costs if you can evidence them
• Travel expenses – between different workplaces, though commuting to your main workplace doesn’t qualify
• Professional training and qualifications – if they’re relevant to your current role
• Tools and equipment – where your employer doesn’t provide them, though these must be for work use only

Importantly, HMRC will not allow relief for expenses that your employer should reasonably be providing, or for general living costs like meals and accommodation whilst at your normal workplace.

The qualifying conditions

For an expense to qualify for tax relief, it must satisfy three key tests. First, it must be incurred wholly for work – this means 100% work-related, with no personal element. Second, it must be exclusively for work purposes – if an item serves a dual purpose, you cannot claim relief. Third, it must be necessary in the performance of your duties.

This is why, for example, you cannot claim for a general computer or phone, even if you use it for work, because these have a personal use element. However, if your employer requires you to use specialised software or equipment that you must purchase yourself, this may qualify.

The rules are consistently applied by HMRC, so it’s worth being honest about whether your expenses truly meet all three criteria before you claim. If you’re unsure, it’s better to seek advice than to claim something that doesn’t qualify, as HMRC may disallow claims and charge interest on any underpaid tax.

How to claim online through Self Assessment

If you’re a UK employee, you’ll claim expenses relief through your Self Assessment tax return. You don’t need to complete a full Self Assessment unless you’re already required to – for example, if you’re self-employed or have other untaxed income – but if you’re only claiming employee expenses, you can use HMRC’s simple assessment option.

Log into your HMRC online account using Government Gateway credentials. Navigate to your tax return and find the section for employment income. Here, you’ll disclose your employment details and add any allowable expenses. You’ll need to list the type of expense, the amount, and ideally keep records to support your claim.

HMRC may ask for evidence, so it’s essential to retain receipts, invoices, bank statements or membership certificates for at least four years. Digital copies are acceptable and often easier to store and retrieve.

Current thresholds and tax year 2024/25

For the tax year 2024/25, there are no earnings thresholds below which you can claim expenses – you can claim regardless of your salary. However, tax relief is only worth claiming if it exceeds the personal savings allowance applicable to your tax band.

If you’re a basic rate taxpayer, tax relief at 20% means every £100 of qualifying expenses saves you £20. A higher rate taxpayer saves £40 per £100 claimed. This is why keeping meticulous records is worthwhile – even modest claims add up over the year.

Conclusion

Claiming tax relief for work expenses is a legitimate way to reduce your tax bill, but accuracy and honesty are paramount. The key is ensuring your expenses genuinely meet HMRC’s strict criteria, and keeping proper evidence to support your claim.

If you’re unsure whether your specific expenses qualify, or if you want help organising your records and submitting your claim, we’re happy to advise. For tailored advice, contact Severn Accounting — we’re here to help.