It's a great idea to establish what expenses you are entitled when employed and make sure that you are maximising Tax Efficiency. Many people are unaware of the claimable expenses when they are in employment.
Unreimbursed Expenses
Have you incurred any expenditure related to your Employment that has not been reimbursed by your Employer. Have you travelled to a temporary workplace (spent less than 24 months or, if working somewhere permanently you spend less than 40% of your time there)? This could be travelling to a meeting, an alternative office or training etc. All Travel and Subsistence costs associated with this are generally deductible. You would be able to include a mileage claim/actual travel expenses incurred on your Tax Return. In addition to this, HMRC will allow you to deduct subsistence/food purchased whilst working at a temporary work location. Please note, you cannot deduct the costs of your ordinary commute to your base office. Please find a list of typical examples below of unreimbursed Employment Expenses that are likely deductible.
What expenses may I be able to Claim Back?
- You can take your estimated mileage travelled when working at a temporary place of work: This could be an office/meeting/training location that you spend less than 24 months or 40% of your time at.
- If you are paying additional money into a pension scheme that is not included as part of your employment, you may be entitled to tax relief on this. Paying extra into pension schemes can be particularly tax efficient when you are a higher rate taxpayer.
- You can make a capital allowance claim of goods purchased (such as Laptops, other equipment) that are directly related to your employment and aid you within your working day.
- Subsistence - Total cost of subsistence/food purchased whilst working at a temporary work location (£):
Use of Home as Office Expense Change
You can no longer (from 6 April 2023) claim use of home as office expenses if your employment contract lets you work from home some of all of the time or your Employer has an office, but you cannot go there sometimes because it's full.
HMRC have carefully worded as follows:
You can still claim tax relief if you have to work from home, for example because:
your job requires you to live far away from your office
your employer does not have an office
What can I Claim?
If you fall into the above you can claim back the increase that working from home has caused your utilities to increase by. Alternatively you can claim back the fixed rate £6 per week, £312 per year.
Date Published 10/02/2023
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