Tax relief on employment expenses: What can I claim?
11th March 2025
Reviewed by RIFT's Senior Personal Tax Specialist, Connor Masters ATT
Reviewed by Connor Masters ATT Connor Masters ATT LinkedIn
Connor is a Senior Personal Tax Specialist at RIFT, where he expertly handles tax returns for a diverse range of customers, including CIS workers, sole traders, and those with foreign income, renta...
Read More about Connor Masters ATTNobody likes paying more tax than they have to, right? That’s where tax relief on employment expenses comes in. If you’re spending your own money on work-related costs and your employer isn’t footing the bill, you might be able to claim some cash back in the form of a tax refund. But what counts as an expense? How do you claim? And how much can you actually get back? Let’s break it down.
What is tax relief on employment expenses?
Tax relief is essentially a way to reduce the amount of income you’re taxed on. If you’re shelling out for necessary work expenses that aren’t reimbursed by your employer, HMRC lets you claim some of that money back. It’s not so much getting a full tax refund on what you’ve spent, but rather a percentage back based on your tax rate.
For example, if you’re a basic-rate taxpayer (20%) and you claim £100 in expenses, you’ll get £20 back. If you’re a higher rate taxpayer (40%), you’ll get £40 back.
Who can claim tax relief on employment expenses?
You might be eligible if:
- You’re an employee and have personally paid for work-related expenses.
- The expense is necessary for your job (not just nice to have).
- Your employer hasn’t reimbursed you.
If you’re self-employed, you claim expenses through Self Assessment instead.
Examples of eligible employment expenses
Some of the most common expenses that qualify include:
- Uniforms and work clothing: If your job requires specific clothing or a uniform that you have to buy and maintain yourself, you can claim for the costs of cleaning, repairing, or replacing it.
- Tools and equipment: If you need to purchase tools or equipment specifically for your job, and your employer doesn’t cover the cost, these expenses can qualify.
- Travel costs: If you travel for work (not your usual commute), you can claim for things like mileage in your own vehicle or public transport costs.
- Professional fees and subscriptions: Memberships to HMRC-approved professional organisations can be claimed, as long as they’re relevant to your job.
- Working from home expenses: If you work from home regularly, you can claim for additional household costs. The standard flat rate is £6 per week, or you can claim actual costs if you’ve got the receipts to prove it.
How to claim tax relief on employment expenses
The process depends on how much you’re claiming:
- If it’s under £2,500 a year, you can use HMRC’s online service
- If it’s over £2,500 a year, you’ll need to file a Self Assessment tax return.
How to claim online
- Head to the HMRC website and log into your Personal Tax Account.
- Go to the ‘Claim tax relief for your employment expenses’ section.
- Follow the steps to enter details of your expenses.
- Submit and wait for HMRC to process your claim – they’ll either adjust your tax code or issue a refund.
If you’re going the paper route, you’ll need to fill in a P87 form and send it to HMRC at:
Pay As you Earn and Self Assessment, HM Revenue and Customs, BX9 1AS
How much tax relief can you claim?
The amount you’ll get back depends on your tax rate:
- Basic-rate taxpayers (20%): Claim £100, get £20 back.
- Higher-rate taxpayers (40%): Claim £100, get £40 back.
It’s not a full tax rebate, but it’s money back in your pocket for expenses you had to cover yourself.
Records you need to keep for claims
HMRC won’t always ask for proof, but if they do, you’ll need:
- Receipts or invoices for any purchases.
- Mileage logs if you’re claiming travel expenses.
- Copies of bills if you’re claiming for working from home.
Keep hold of these for at least four years just in case HMRC comes knocking.
Time limits for claiming tax relief
If you’ve been missing out, don’t worry – you can backdate claims for up to four tax years. That means in the 2025/26 tax year, you can still claim for expenses from as far back as 2021/22.
Get your tax relief sorted today
If you’ve been covering work expenses out of your own pocket, you might be owed a tax rebate. Many employees miss out simply because they don’t realise what they can claim. Whether it’s uniform costs, travel expenses, or professional fees, claiming tax relief on employment expenses could put money back in your pocket.
Not sure where to start? RIFT Tax Refunds makes claiming easy. Use our tax calculators to get the ball rolling.