HMRC Tax Rebate for payroll employees

March 2022
5 minutes

Tax rebates from HMRC are great, but do you know that as an employee if you don’t make a claim, you lose your tax rebate. Yes, tax is deducted through payslips, but no automatic relief is given unless you raise your hand to make a claim. TaxQube are helping clients to identify and prepare valid tax rebate claims from HMRC.

How much you can claim depends on the type of your job and individual circumstances. That’s why a tax specialist firm is able to get you more money because they are well versed in the tax rules and able to maximise your claim value (legally). Contact us today if you need our help and would like to make a tax rebate claim.

Medical | If you are a medical professional such as a doctor, please read this article.

High Earner | If you are a high earner professional, please read this article.

Here is a list of expenses that could apply to you.

Mileage – If the mileage allowance that your employer pays you is less than the HMRC rate, you can claim the balance. The first 10,000 business miles, according to HMRC, can be claimed at a rate of 45p per mile. Over 10,000 miles the allowable HMRC rate drops to 25p per mile. If you are paid less than these rates by your employer, you can claim the difference on your self-assessment return. More detailed information is available from HMRC.
Working from home – You can claim a home working allowance if your company requires you to work from home or if you have a home working arrangement with them. This is to aid with rising household expenditures associated with business use, such as power, gas, and phone. Now, you can claim £6 every week.
Charitable contributions – You can claim tax relief on gift-aided charity donations if you are a higher-rate taxpayer. For example, if you donate £200 to charity, the total donation is £250, thus you can get £50 back if you pay 40% tax. More information about the relief is available from HMRC.
Clothing and Tools – If you work in certain industries, such as construction or metalworking, you may be required to wear uniforms, specialised or protective clothing, gloves, and so on. You can claim tax relief for the cost of maintaining, cleaning, or replacing these items, but not for the cost of purchasing them. That is, assuming your employer does not already compensate you for these expenses.
Professional Fees and subscriptions – You can claim tax relief on professional fees, membership fees, subscriptions, etc. if they are necessary or beneficial for your work. See HMRC for more info. To be entitled to the relief the organisation subscribed to must be on the HMRC approved list.
Capital Allowances – If you have to buy equipment for work, that your employer does not pay for, you may be able to claim capital allowance tax relief. The example HMRC gives is of a filing cabinet purchased by an employee for work, but not paid for by the employer. You cannot claim relief for motor vehicles. These are dealt with on a different part of your tax return.
Seafarers Earnings Deduction – If you’re an employee and work at sea, you may be able to reduce your tax bill by getting the Seafarer’s Earnings Deduction. To get the deduction, you must have worked on a ship, worked outside of the UK long enough to qualify for the deduction (usually a minimum of 365 days), been resident in the UK or resident for tax purposes in a European Economic Area (EEA) State.
Marriage Allowance – If you are a Basic Rate Taxpayer and your spouse has income below the Personal Allowance ( £12,500 for 2019/20 and 2020/21, £12,570 for 2021/2020), they can transfer 10% of their Personal Allowance to you.
Pension Contribution – If you are a higher rate taxpayer, you may be entitled to Higher Rate Tax Relief on your Pension Contributions.
Rent a room relief – If you are an employee who also lets out a room in your home, you can earn up to £7500 tax free under the Rent a Room Scheme. This is halved if you share the income with someone else.