Do you know that the expenses you incur while performing your job responsibilities are tax deductible? If you didn’t well, now you do and we are here to tell you what it actually means.
A particular expense can be termed “tax deductible” when it can be deducted from your annual income, so as to cut down the amount of revenue that’s subject to tax. However, it has to be an expense that you’ve incurred solely to perform the duties of employment and paid it while doing the job.
Not to mention, you are entitled to claim tax relief only in these two cases:
- If you’ve made payments for the expense without any compensation
- If your employer has repaid the expenditure, but you were still paid tax for it.
As an employee, if you wish to avail tax relief on work-related expenses then you must know what these are and at Northants Accounting we shed light on how you can claim tax relief on the same.
Work From Home
At times, to get a job done your employer might ask you to work from home or you might already have such an agreement in place with them. Yes, we get that working from home affects your household costs, such as telephone calls made for business purposes, utility bills, cost of gas, etc. But, you no longer have to fret about it, because now you can claim for tax return on all of these additional work-related expenses.
Uniform and Protective Clothing
If you’re working in a specific industrial sector, say construction or metal working industry, it’s obvious that you might have to get yourself specialist clothing or uniform for safety measures. You certainly can claim tax relief on the maintenance and replacement of these clothing items. However, this does not include your regular work clothes.
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Purchasing Other Tools
Apart from purchasing uniforms and protective clothing, there is a possibility that you’ll have to buy some equipment for work, which isn’t paid for by your employer. By doing so you may feel that your expenditure is way more than what you actually earn. Yes, this might be somewhat true, but you can surely get that money back. All you have to do is claim for it from the HMRC.
Subscriptions and Professional Fees
At times, you will have to take subscriptions from approved professional organisations or pay membership fees to perform certain duties of employment. Nonetheless, while filing for tax return you can make a claim for tax relief on these subscriptions and membership fees provided they were “completely, exclusively and necessarily” used for your job. Also, to be eligible to claim for tax relief the professional organisation you’ve subscribed for has to be approved by HM Revenue and Customs (HMRC).
Of course, it is easy to misinterpret the rules set by HMRC to claim a tax relief. So, before filling out the necessary documents get in touch with a specialist accountant to make sure the claim is not being refused and you’re able to claim the maximum amount.
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