As an employee in the UK, knowing what you can claim back on tax can save you money. Here are some common tax reliefs available to employees:
1. Pension Tax Relief Refund
If you’re a higher rate taxpayer, you can claim additional tax relief on your pension contributions. While basic rate relief (20%) is applied at source, you can claim the extra 20% through your self-assessment tax return. For example, if you contribute £10,000, you can claim an additional £2,000.
2. Mileage Claims Tax Refund
Using your own vehicle for work? You can claim mileage allowance relief. HMRC’s approved rates are 45p per mile for the first 10,000 miles and 25p thereafter. If your employer reimburses at a lower rate, claim the difference. The average claim is around £2,500 per year.
3. Uniform and Work Clothing Tax Refund
Claim tax relief for maintaining or replacing uniforms or specialist work clothing required for your job. For example, nurses can claim around £125 annually. Note: Ordinary clothing is not eligible.
4. Working From Home Tax Relief
If you work from home, you can claim a portion of your household expenses. The standard allowance is £6 a week, but you can claim more if your costs are higher and you have evidence. This can amount to around £312 a year.
5. Professional Fees and Subscriptions Tax Refund
You can claim tax relief on fees and subscriptions to approved professional bodies if they are necessary for your job and you pay them yourself. The average claim varies but can be significant for memberships in professional organizations.
6. Travel and Overnight Expenses Tax Refund
Claim costs for travel and accommodation incurred while performing your job, including public transport, hotel bills, and meals. The typical claim amount can vary widely depending on the frequency and nature of the travel.
7. Tools and Equipment Tax Refund
If you need specific tools or equipment for your job and buy them yourself, claim tax relief on these costs, including repairs and maintenance. For example, a mechanic might claim £200 annually.
8. Training Costs Tax Refund
Training costs necessary to perform your current job can be claimed. This doesn’t cover training for a new profession. The average claim depends on the cost of the courses and materials.