Can employees claim expenses for tax relief?

Full answer

Employees can claim tax relief on work-related expenses under the "wholly, exclusively and necessarily" test — meaning the expense must be required to do your job, not merely helpful or convenient. **How to claim — HMRC P87:** For claims under £2,500 per year, use the **P87 form** (online via Government Gateway or postal). For amounts above £2,500 or if you already complete Self Assessment, include expenses on your tax return. **Common claimable expenses:** **1. Mileage (AMAP rates):** | Vehicle | First 10,000 miles | Above 10,000 miles | |---|---|---| | Car/van | 45p/mile | 25p/mile | | Motorcycle | 24p/mile | 24p/mile | | Bicycle | 20p/mile | 20p/mile | If your employer pays less than these rates, you can claim relief on the shortfall. **2. Working from home:** - £6/week (£312/year) flat rate — no receipts needed - Or actual costs (broadband, extra heating/electricity proportionate to home office use) **3. Professional subscriptions:** Annual membership fees for HMRC-approved professional bodies (e.g. RCN for nurses, Law Society, ICAEW) — full amount claimable. **4. Flat-rate expenses by occupation:** HMRC publishes flat-rate allowances for specific trades (e.g. £120 for nurses' uniforms, £60 for mechanics). These avoid the need for receipts. **5. Business travel:** Travel to temporary workplaces (not your regular place of work). **Commuting (home to permanent workplace) is never deductible.** **What employees CANNOT claim:** - Normal commuting costs - Entertainment - Capital equipment (computers — unless employer can't provide one) - Expenses reimbursed by employer **Self-employed vs employees:** Self-employed workers use a much broader "wholly and exclusively" test (without "necessarily"), allowing more generous expense claims via their SA tax return.

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• Self Employed Tax Uk