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Claiming Tax Relief on Employment Expenses? Here’s What’s Changing 📝💼
HMRC are introducing evidence requirements for claims for tax relief on employment expenses. These requirements come into force on 14 October 2024. As a result, HMRC are also making changes to the process for claiming tax relief on employment expenses. This is to try to ensure HMRC only pay tax refunds to taxpayers who are eligible for tax relief.
What are the new evidence requirements?
From 14 October 2024, HMRC will (in most cases) require you to provide supporting evidence when you claim tax relief on employment expenses.When you send supporting evidence with your claim for tax relief, HMRC will check it. If they are satisfied that you are eligible for the tax relief, they will process your claim.Evidence may include copies of receipts that show the date of each expense and how much you paid. If you are claiming tax relief for mileage, HMRC will expect to see a copy of your mileage log.
Uniform🥼,work clothing 👷and tool expenses 🛠️(flat rate expenses)
The only exception is where your claim is for tax relief on flat rate expenses only. You do not have to provide evidence to support these claims. HMRC will carry out checks to ensure they only give tax relief to eligible taxpayers.
What evidence do I have to provide? 🔍
You must tell HMRC which employment you incurred the expense for, if your employer reimbursed any of the cost, and how much of it your employer reimbursed. In addition, you must provide evidence of each expense. The type of evidence you have to provide to support your claim for tax relief depends on the employment expense.Evidence may include copies of receipts that show the date of each expense and how much you paid.If you are claiming tax relief for expenses for working from home, you must send HMRC evidence that shows that you have to work from home, for example, a copy of your employment contract.
Tax refund agents – a word of warning 🛑⚠️
We would urge caution when choosing a tax adviser. There are agents that specialise in obtaining tax refunds for people. However, some of these tax refund companies can charge very high fees. We are also aware of some tax refund companies submitting inaccurate or false claims. Such actions by tax refund companies can result in serious problems for taxpayers.
Important dates 📅 :
14 October 2024 to 30 October 2024:
During the period 14 October 2024 to 30 October 2024, it will not be possible to submit a new claim for tax relief on employment expenses using HMRC’s digital form or over the telephone.
31 October 2024 onwards:
HMRC will launch a limited online claim process for tax relief on flat rate expenses (uniform, work clothing and tool expenses) only.
April 2025 onwards:
HMRC intend to launch an online claim process for all other employment expenses. This will sit alongside the paper form P87 claim process. You will still have to provide evidence when the full online claim process is launched, unless the claim relates only to flat rate expenses.