10 Expenses that you can claim on your Self-Assessment form
We work and we spend while working in the company. As an employee, there are many expenses which you can claim on your self-assessment form even if they are back dated. While submitting your self-assessment form, make sure whether you are entitled to tax relief on any of these expenses in the previous year, which you are not able to claim that time can be claimed back now in that particular return. Kindly keep evidences of all your expenses, bills & mileages as HMRC may ask you to show evidences any time.
The expenses which you can claim along with the tax relief in your self-assessment form are as follows –
Mileage Allowance
Mileage allowance is provided to employees by their employers at a specified rate. If your employer is paying you mileage allowance less than HMRC rate, you are entitled to claim the balance. As per HMRC, mileage can be claimed at the following rates –
In case your employer is paying you less than the rates specified above, you can easily claim the difference on your self-assessment form.
Work from Home
If your employer tells you to start working from home or you have signed any house agreement with your employer, you are entitled to claim home working allowance. It is provided to cover employee’s household cost which goes high due to its business use. For ex – Phone, gas & electricity. The amount which you can claim on working from home is £4 a week.
Charitable Contributions
You are also entitled for claim on charitable contributions in case you are a higher tax payer and made certain gift aided charitable donations. For ex- Suppose you donated £200 to charity, the total of the donation will be £250. You are entitled to claim amount of £50, if you pay at 40%.
Clothing & Tools
You are also entitled for claim if you are working with certain industries like metal working industries/building etc. In such industries, you wear uniforms, protective clothes, gloves etc. You can claim tax relief on maintenance or cleaning or replacement of these items but you can’t make a claim on the initial cost of buying items.
Professional Fees & Subscriptions
If it is necessary or beneficial for your work, you are also entitled for tax relief on membership fees, professional fees, subscriptions etc. In order to get entitled for tax relief, your organisation must be listed on HMRC approved list.
Capital Allowances
If you are purchasing equipment for work & know that your employer does not pay for it, you may be entitled to claim capital allowance tax relief. You cannot claim in case of motor vehicles as it comes under different parts of your tax return.
Seafarers Earnings Deduction
If you are an employer and working at sea, you may enjoy seafarer’s earnings deduction to reduce your tax liability, In order to get qualified for such deduction, you need to fulfill the following conditions mentioned below –
Marriage Allowance
In case you are a basic rate tax payer and the income of your spouse is less than the personal allowance i.e. £12500, you can claim 10% of the personal allowance.
Pension Contributions
In case you are a high rate tax payer, you may be entitled for higher rate tax relief on your pension contributions.
Rent a Room Relief
In case you are an employee and provided a room to other person on rent in your house, you can claim up to £7500 tax free under rent a room scheme. It becomes half, if you are sharing the income with someone else.
How Expense Claim is provided by HMRC?
Expense claim is provided by HMRC in the following ways -
Expense Claim up to £2,500
If your expense claim is £2500 or less, HMRC will provide you tax relief straight away through your tax code. In case the claim you made is an estimated figure, HMRC will review the same at the end of the year. They will make the necessary adjustments in your tax code for the next tax year.
Expense Claim above £2,500
If your expense claim is more than £2500, HMRC will provide you tax relief for the current year & next year in your tax code and send you tax return for filling. HMRC also check your tax calculations of the previous year.
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