Severn Accounting
Tax & Accounting

How to claim tax relief for employment expenses

By Ali Jaw ·

Many UK employees miss out on valuable tax relief simply because they’re unaware of what they can claim. If you’ve paid for work-related expenses from your own pocket—whether that’s professional fees, uniforms, or working from home costs—you may be entitled to claim tax relief through your Self Assessment tax return or via your employer’s payroll system. This guide walks you through the main categories of claimable expenses and explains how HMRC treats them.

What counts as an employment expense?

HMRC allows you to claim tax relief on expenses that are:

  • Wholly, exclusively, and necessarily incurred in performing your job duties
  • Paid for by you personally (not reimbursed by your employer)
  • Not personal or domestic in nature

This means the expense must be essential to doing your job—not just convenient or helpful. The “exclusively” part is important: if an item has any dual purpose (personal and professional), you generally cannot claim relief on the full amount.

Common claimable expenses include professional subscriptions and fees (accountancy qualifications, legal memberships, etc.), work-related clothing that cannot be worn as everyday wear (uniforms, safety equipment, protective clothing), and travel costs between different workplaces—though not your regular commute to your main office.

Working from home relief

Since the pandemic, many of us have continued working from home at least part-time. HMRC recognises this and allows relief for the additional household costs you incur.

You have two options:

1. Simplified expenses claim: Claim £6 per week (or £312 per tax year) with no need for receipts or detailed records. This is calculated as £3 per week for the first person working from home in a household and £1 per week for each additional person.

2. Actual expenses claim: Claim a proportionate share of rent, council tax, utilities, internet, and mortgage interest (not capital repayment). You’ll need to calculate what percentage of your home is used for work and gather supporting evidence.

The simplified approach is usually simpler for employees, but if your actual costs are significantly higher—perhaps you rent a dedicated office space at home—the detailed calculation might yield greater relief. Many accountants recommend keeping receipts for utility bills and broadband costs just in case HMRC enquires.

Professional fees and memberships

If you’re required to hold professional qualifications or membership to do your job, the costs are generally claimable. This includes:

  • Annual membership fees for professional bodies (BHS, RICS, ICAEW, etc.)
  • Continuing professional development (CPD) courses and training directly related to your role
  • Professional indemnity insurance
  • Subscriptions to professional publications and journals

However, fees for hobbies or general interest courses typically won’t qualify. The key is whether the qualification or membership is a requirement, or at least substantially enhances your ability to do your existing job.

Travel and vehicle expenses

Distinguishing between claimable and non-claimable travel can be tricky. Your daily commute to your main place of work is not claimable, even if you use your own vehicle. However, if you work for multiple employers or travel between different workplaces during the day, you can claim relief on those journeys.

If you use your own vehicle for work travel, you can claim a mileage allowance at the HMRC approved rate of 45p per mile for the first 10,000 miles in the tax year, then 25p per mile thereafter. You’ll need to keep a mileage log and records of business journeys.

Alternatively, some employers reimburse mileage directly—if you’re reimbursed, you cannot also claim tax relief.

How to claim

If you’re an employee, you can claim through your Self Assessment tax return (if you complete one) or, for simpler claims, by telephoning HMRC or completing the online form. Alternatively, ask your employer whether they can adjust your tax code to give relief during the tax year, rather than waiting until January after the year-end.

If you’re self-employed, claimable expenses are deducted from your trading income, reducing your taxable profit directly.

Always keep receipts, invoices, and supporting documentation for at least five years. HMRC can request evidence if your claim is queried.

Final thoughts

Tax relief on employment expenses is an underused benefit that can put money back in your pocket. Whether you’re claiming a few pounds for professional subscriptions or a more substantial amount for working from home, ensuring you capture everything you’re entitled to is simply good financial housekeeping.

If you’re unsure whether a particular expense qualifies, or you’d like help maximising your claims ahead of the 31 January Self Assessment deadline, don’t hesitate to get in touch.

For tailored advice, contact Severn Accounting — we’re here to help.