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How to Claim Tax Relief on Employment Expenses | Claiming Tax Relief for employee expenses

How to Claim Tax Relief on Employment Expenses | Claiming Tax Relief for employee expenses

Mike Wakeford

Claiming tax relief on employment expenses
If you are an employee who needs to use their own money to pay for things used as part of your employment, you may be able to claim tax relief. In most cases, you can claim tax relief on the full cost as long as you only use these things for your work. Tax relief is reduced if your employer provides a financial contribution towards employment expenses, and no relief is available if you receive all the money back or you are incurring the cost to purchase alternative equipment to that provided by your employer (e.g. you are provided with a basic laptop but you want a better model).
The way to claim tax relief depends on the amount you are claiming. HMRC provides the following information on making a claim:

Claims up to £2,500
You can make your claim:

  • Online;

  • Use a Self-Assessment tax return if you already file a return;

  • By using HMRC’s online service or by printing and posting form P87 if you do not file a tax return or

  • By phone if you have had a successful claim in a previous year and your employment expenses are less than £1,000 (or £2,500 for professional fees and subscriptions).

Claims over £2,500

  • You can only claim using a Self-Assessment tax return. You need to register if you do not file a return.

Rules on using your own equipment
There are different rules if you are an employee using your own uniforms, work clothing and tools for work. You cannot claim tax relief on the initial cost of buying small tools or clothing for work. However, it is possible to claim for the cost of repairing or replacing small tools you need to provide as an employee (for example, scissors or an electric drill) or cleaning, repairing or replacing specialist clothing (for example, a uniform or safety boots). A claim for valid purchases can be made against receipts or as a 'flat rate deduction'.
You have four years from the end of the tax year to make a claim. For example, there is a deadline of 5 April 2024 for making a claim dating back to the 2019-20 tax year.

Contact Us
If you’re unsure if your able to claim this tax relief in your current position. Contact our expert tax team today who can help find out if you have a claim and how to either claim for tax relief using your self assessment tax return or help with the process of filling in a p87 form.