STOP Losing Money! How PAYE Employees Can Claim Tax Relief Online

I Hate Numbers: Simplifying Tax and Accounting

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9d ago 9:28

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Are you a PAYE employee spending your own money to do your job without getting reimbursed? You could be missing out on money that's legally yours through tax relief claims. This episode of the I Hate Numbers podcast breaks down everything you need to know about claiming work expenses online using HMRC's updated system.

We explore what qualifies for tax relief, walk through the new online claiming process, and provide essential evidence requirements to ensure your claims succeed. From travel expenses and professional subscriptions to working from home costs, we cover the most common claimable expenses with real-world examples. Whether you're new to expense claims or looking to catch up on backdated claims, this episode gives you the practical knowledge to recover money you're entitled to.

If you're an employee who pays for work-related expenses out of your own pocket, this episode will help you understand your rights and navigate HMRC's requirements with confidence.

Main Topics & Discussion

Understanding Tax Relief on Work Expenses

Tax relief is available for PAYE employees who pay for work-related expenses from their own pocket without reimbursement. The key criterion is that expenses must be "wholly, exclusively, and necessarily incurred in the course of your job." This excludes personal items like lunch or your normal daily commute, but covers expenses directly connected to your work duties.

What You Can Claim - The Essential Checklist

Travel and Mileage: You can claim for travel outside your usual commute, including meetings, site visits, or temporary work locations. When using your own car, claim mileage at statutory rates (45p per mile for first 10,000 miles, then 25p thereafter). Public transport ticket costs are also claimable, but remember - your normal commute to the office doesn't count.

Professional Fees and Subscriptions: Payments to trade bodies, professional groups, or governing bodies that are work-related and appear on HMRC's approved list qualify for relief. This includes trade unions, professional networks, and industry-specific memberships.

Working from Home Costs: When your employer requires you to work from home (not by choice), you can claim a proportion of household costs including heating, lighting, and broadband. The key is proving it's a job requirement, not just convenience.

Tools, Uniforms, and Equipment: Specialist gear, work clothing, and tools that your employer hasn't provided may qualify. HMRC offers flat-rate claims for uniform maintenance and toolkits for approved occupations.

The New Online Claiming Process

HMRC's online service for expense claims has been updated and relaunched. If your total claim is £2,500 or less in a single tax year and you're not required to complete a self-assessment tax return, you can claim online at gov.uk/tax-relief-for-employees/travel-and-overnight-expenses. For claims over £2,500 or if you already complete self-assessment, use your tax return instead.

Essential Evidence Requirements

Professional Subscriptions: Provide receipts, bank statements, or payment proof showing what you paid, who you paid it to, and when. Include the organization name, amount, and date.

Mileage Claims: Maintain a detailed mileage log with the date of travel, journey reason, start and end postcodes, and total mileage. Even if your employer reimburses mileage below statutory rates, you can claim the difference.

Working from Home: Obtain written evidence that working from home is required, such as a letter from your employer or contract clause demonstrating it's mandatory, not optional.

Other Expenses: Keep receipts and bank/credit card statements showing payments made by you personally, not reimbursed by your employer.

Backdating Claims and Avoiding Common Mistakes

Good news for those discovering this late - you can backdate claims for up to four years. Just ensure you have proper records for each year claimed. Avoid common mistakes like claiming ordinary commuting costs, lacking proper evidence, submitting duplicate claims, or including personal purchases like everyday clothing or office supplies.

Flat Rate Claims Exception

For certain approved occupations, HMRC recognizes standard expense levels without requiring detailed evidence. This includes uniforms, tools for engineers and mechanics, and protective gear. Check HMRC's list of approved professions for applicable flat-rate allowances.

Links Mentioned in This Episode

🌐 HMRC Online Expense Claims: www.gov.uk/tax-relief-for-employees/travel-and-overnight-expenses

Episode Timecodes

[00:00:00] – Introduction [00:00:52] – What is Tax Relief on Work Expenses? [00:02:00] – What You Can Claim - The Essential Checklist [00:03:23] – The New Online Claiming Process [00:05:00] – Essential Evidence Requirements [00:07:00] – Backdating Claims and Common Mistakes [00:08:10] – Quick Recap and Key Takeaways [00:09:00] – Final Thoughts & Call to Action

Host & Show Info

Host Name: Mahmood Reza About the Host: Mahmood is an accountant, business finance coach, and founder of I Hate Numbers. With decades of experience helping businesses improve their numbers, he's on a mission to simplify finance and empower entrepreneurs by saving tax and time!

Podcast Website: https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/

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