Could You Be Due a Christmas Bonus from HMRC?

preparing for a tax inspectionThe most wonderful time of the year could be made even more wonderful for some with a Christmas bonus from HMRC. Millions of workers across the UK that work in the service industry and are paid through PAYE could be eligible to claim tax rebates on their expenses.

Find out more about the eligibility criteria and how to check if you can claim the bonus in time for Christmas.

Who Is Eligible?

If you use your own money for things you require for your job, you may be eligible to claim tax relief. Nurses, hairdressers, construction workers and those in retail and hospitality are among the top professions likely to be eligible, however, anyone who has used their own money to do the following could also claim:

  • Repairing or replacing the small tools needed to carry out their jobs.
  • Cleaning, repairing or replacing specialist clothing – this includes work uniforms as well as protective gear.
  • Business mileage excluding commuting to and from work.
  • Travel and overnight expenses.
  • Professional fees and subscriptions.

You can use the GOV UK website to check your eligibility. Please note that you must have a Personal Tax Account in order to do this.

How To Claim

If you think you may be eligible for a tax rebate, we recommend you make your claim directly through the GOV.UK website. Whilst some independent companies offer to claim tax relief on your behalf as a service, they will take a percentage of the money you receive as payment.

How Much Can Be Claimed?

Eligible employees can claim tax relief at the same rate that they pay tax.

For example, if a worker spent £100 on eligible items and paid tax at the basic rate of 20%, they would be able to claim £20 in tax relief.

Claims can be made for up to four years after the tax year in question, which is great news for workers who have been using their own money to buy work-related equipment for some time.

Are There Any Exceptions?

Yes, eligible items can only be claimed against if they are solely used for work purposes – so if you pay for a repair or replacement of a tool you use for work that you also use around the home you will not be able to claim.

Additionally, you will not be eligible if your employer gives you all of the money back through your claimed expenses, or gives you an alternative.

Talk To The Experts

If you think you’re eligible for tax relief, we recommend you apply through GOV UK, once approved, your claim could be deposited into your account within 3 weeks. If you’re looking for an accountant to help you manage your account and tax in the new year, we can help. Give us a call today on 0117 379 0810.

mm

Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
mm