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How to claim back tax on your work expenses

get your money back

Employees who incur work-related expenses, which are not already reimbursed by their employer (or in full), may be entitled to claim a tax rebate. These expenses have to be entirely work-related and necessary for you to perform your duties. Such expenses may include the purchase of tools; business mileage if you have to use your own vehicle; exam fees & professional subscriptions; IT equipment; etc....

Claiming Tax Back On Work Expenses

There are many more expenses for which you could claim tax relief... If you aren't sure about this, then a reputable tax agent such as TaxRefundPro will be able to advise you free of charge. Take the following scenario as typical example. Jack is an employed mechanic and he bought a tool box last year. His employer didn't pay anything towards this purchase so Jack had to foot the bill entirely out of his own pocket. Because owning a tool box is necessary for him to do his job as a mechanic and his employer did not reimburse him, he can claim a mechanic tax rebate.

It is important that what you claim are legitimate work expenses. If you try to claim for anything else you would be committing fraud. This means that you could go to Court, pay a hefty fine and even go to prison... not worth the risk! The best way to determine if your expense is work-related or not is to ask yourself 'Are these expenses necessary for me to do my job?' Take our previous example, Jack. As a mechanic if he doesn't have a tool box then he can't do his job; his expense is work related, therefore he can claim tax back.

These expenses also need to be incurred and paid by you and you will need to have proof of this i.e. Receipts or bank statements. We will use these receipts and statements to calculate the refund value that you are entitled to. What you would actually be claiming is the tax relief on the work expenses you incurred. This tax relief is 20% of the value of the expenses and you can only claim tax relief up to the value of the tax that you actually paid in the same tax year. So, returning to Jack's example, let's say his tool box cost him £3,000 and he actually paid £1,500 income tax in that year. The 20% tax relief for Jack's tool box is therefore worth £3,000 x 20% = £600. This is how much tax back Jack can expect as a tax refund. However, if Jack had only paid £500 income tax in that year, then his tax refund would be limited to just that - £500!

Under current rules, you can  claim back tax relief going back 4 tax years, which is as far back as April 2009. However, if you have incurred expenses in this current tax year then you will need to wait until the tax year ends to be able to claim. If you've ever wondered, 'How do I claim tax back on work tools?', then act now by applying online for your Expenses Tax Rebate Pack including a free assessment call by one of our tax consultants.