Claims can be made online using HMRC’s online service, by post on form P87, by phone or, where a self-assessment return is completed, via the self-assessment return.Since the Tax Cuts and Job Act of 2017 (TCJA) was passed, a little-known deduction for unreimbursed partner’s expenses (UPE) has taken on more significance. ![]() There are different ways to make a claim depending on your circumstances. If your employer does not pay mileage allowances or pays less than the approved amount, you can claim tax relief for the difference between the approved amount and the amount paid by your employer.Įmployers in certain industries may claim a flat rate deduction for certain expenses in line with rates published by HMRC (see Although claiming the flat rate removes the need to keep records of actual costs, employees can claim a deduction based on actual costs where this is more beneficial. For cars and vans, this is 45p per mile for the first 10,000 miles in the tax year and 25p per mile for any subsequent miles. If you use your own car for business travel, your employer can pay tax-free mileage payments up to the approved rates. Where the expense is reimbursed by your employer, a deduction cannot be claimed as well however, the amount reimbursed is not taxable and is ignored for tax purposes. ![]() Relief is available only for expenses incurred as part of your job, and not for those which incurred, albeit arguably necessarily, to enable you to do your job.Įxpenses for which tax relief for employees may be claimedĪ deduction can be claimed for any expense that meets the ‘wholly, exclusively and necessarily’ test.Įxamples include professional fees and subscriptions, travel and subsistence costs, additional costs of working from home, cost of repairing tools or specialist clothing, phone calls, etc. In the performance of the job v putting the employee in a position to do the jobĪ distinction is drawn between expenses that are incurred in actually performing the job and those which are incurred in putting yourself in the position to do the job.Įxpenses incurred in travelling from the office to a meeting with a supplier and back to the office are incurred in performing the job.īy contrast, childcare costs or home to work travel are incurred to put you in a position to do your job. The rules for travel expenses are different, but broadly operate to allow relief for ‘business travel’. This means that ‘each and every’ jobholder would be required to incur the expense.Ĭonsequently, there is no relief if the expense is not ‘necessary’ and you chose to incur it (even if the ‘wholly and exclusively’ parts of the test are met). The test is a harsh test to meet the ‘necessary’ conditions.
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