What you CAN’T claim back on work expenses

HMRC have revealed that most of the common errors made when people claim back for work expenses are completely accidental.

In our latest blog, Sysum Howard Duggan have compiled this handy list of expenses that are a no-no:

• Any work expenses that are already covered by your employer.
• Working from home costs when you have an office base but choose not to work there. If your employment contract lets you work from home some or all the time, then you won’t be eligible for this relief.
• Uniform, work clothing and tools that have already been provided by an employer can’t be claimed – this includes choosing to buy ‘better quality’ alternatives.
• Uniform washing costs when your employer has a laundry facility that you choose not to use.
• Workwear that doesn’t include a visible logo, for example, if your employer advises you to wear all black clothing this is not an eligible expense.
• Union fees, unlike certain professional membership fees, aren’t an allowable expense.
• Travel and overnight expenses if travelling or commuting to and from your normal place of work.
• Lunch costs when you are travelling to your normal workplace – you can only claim expenses for food and drink when travelling to a temporary place of work.
• Food you bring from home when travelling to a temporary workplace, you can only claim the cost of food you paid for during your time away.

You should also keep these five points in mind before claiming:

1. Have you got evidence to back up your expense claim? HMRC require customers who want to claim work expenses to provide supporting evidence to prove their eligibility.
2. Tax relief on expenses won’t necessarily lead to a repayment. Some expenses are automatically coded through to the following year – check your tax code is still correct.
3. Expenses must be completely work-related and necessary for you to do your job. You can’t claim for any expenses that your employer has already reimbursed.
4. If you had an eligible claim in a previous job but the terms are different in a new job, then you may have incorrect items in your tax code.
5. If you pay tax through ‘pay as you earn’, you’re unlikely to need to claim expenses through self-assessment.

If you run your own business and would like to avoid making mistakes in future, trust Sysum Howard Duggan with your self-assessment tax return. Call 01905 622202 to speak to our friendly team.