What Can You Claim Back On Tax As An Employee

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Audio Summary - Tax Relief on Work Expenses

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Understanding Tax Relief for UK Employees in 2025-26

Now, let’s get straight to the point: if you’re an employee in the UK, you might be paying more tax than you need to because you’re not claiming back expenses you’re entitled to. Tax relief allows you to reduce your taxable income for certain work-related costs, potentially putting extra cash in your pocket. But what exactly can you claim, and how does it work? In this part, we’ll break down the essentials—eligibility, key expenses, and the tax landscape for 2025/26—using the latest HMRC rules.

What Is Tax Relief and Who Can Claim It?

None of us loves wading through tax jargon, but here’s the deal: tax relief means HMRC lets you deduct certain work-related expenses from your taxable income, reducing the tax you pay. To qualify, you must be a PAYE (Pay As You Earn) employee who’s paid tax in the 2025/26 tax year and incurred costs “wholly, exclusively, and necessarily” for your job. That’s HMRC’s golden rule, and it’s strict. If your employer fully reimburses you for an expense, you can’t claim it. If they partially reimburse you, you can claim the difference. You’ve got four years from the end of the tax year to make a claim—so for 2025/26, that’s until 5 April 2030.

For context, the standard personal allowance for 2025/26 is £12,570, meaning you only pay income tax on earnings above this. Tax bands are:

• Basic rate: 20% on £12,571–£50,270

• Higher rate: 40% on £50,271–£125,140

• Additional rate: 45% on £125,141+

Your tax relief is calculated based on your tax rate. For example, if you claim £100 and you’re a 20% taxpayer, you get £20 back. A 40% taxpayer would get £40. Simple, right?

What Expenses Can You Claim as an Employee?

So, what can you actually claim? HMRC allows tax relief on specific expenses, but only if they’re directly tied to your job and not for personal use. Here’s a rundown of the main categories for 2025/26:

• Uniforms and Specialist Clothing: If your job requires a uniform (think nurses, pilots, or branded company gear), you can claim for cleaning, repairing, or replacing it. Everyday clothes, like a suit, don’t count, even if you wear them to work. Many industries have agreed “flat rate expenses” with HMRC, so you don’t need receipts. For example, healthcare workers can claim £125 per year, while engineers might claim £110.

• Tools and Equipment: If you buy tools or equipment (e.g., a drill for a tradesperson) that last less than two years, you can claim their upkeep costs. For bigger items, like a computer, you might claim capital allowances via the Annual Investment Allowance (AIA), but only if your employer doesn’t provide or reimburse it.

• Working from Home Allowance: If your job requires you to work from home (e.g., no office space or you live far from the workplace), you can claim £6 per week (£312 per year) without receipts. Alternatively, you can claim actual costs (e.g., electricity, heating) if you keep detailed records.

• Business Travel: Travel to temporary workplaces (not your regular office) qualifies, including mileage if you use your own car. HMRC’s approved rates for 2025/26 are 45p per mile for the first 10,000 miles and 25p thereafter for cars. Bicycles are 20p per mile.

• Professional Fees and Subscriptions: Fees for professional bodies (e.g., General Medical Council for doctors) are claimable if they’re HMRC-approved and necessary for your job.

Employee Expense Claims Overview

Here’s a quick table to show flat rate expenses for common industries in 2025/26:

Industry	Flat Rate Expense (£/year)
Healthcare (e.g., nurses)	125
Construction (e.g., joiners)	140
Engineers	110
Airline cabin crew	1,022
Armed forces (uniform upkeep)	100

Source: GOV.UK, HMRC Flat Rate Expenses, updated April 2025

How Much Can You Save with Tax Relief?

Now, let’s talk numbers. Your savings depend on the expense amount and your tax rate. Say you’re a nurse claiming the £125 flat rate expense and you pay 20% tax. You’d save £25 (£125 × 20%). If you’re a higher-rate taxpayer at 40%, that’s £50. For working-from-home claims, the £6 weekly allowance (£312/year) saves £62.40 for a 20% taxpayer or £124.80 for a 40% taxpayer.

Here’s a case study to make it real: Meet Elowen, a paramedic in Cornwall. She claims the £125 flat rate for uniform upkeep and £312 for working from home (her ambulance station lacks office space). As a 20% taxpayer, she saves £25 + £62.40 = £87.40 annually. Over four years (backdating claims to 2021/22), that’s £349.60—a nice boost for a holiday or bills.

Why Haven’t You Heard About These Claims?

Be careful! Many employees miss out because they don’t know they’re eligible or find HMRC’s rules daunting. During the pandemic (2020–2022), working-from-home claims were easier due to lockdown rules, but post-2022, eligibility tightened. You now need a formal requirement to work from home, not just a hybrid arrangement. Also, HMRC’s recent crackdown (October 2024) requires evidence for most claims, except flat rate expenses, making it trickier but not impossible.

What Can’t You Claim?

Now, don’t get carried away. HMRC is strict about what doesn’t qualify:

• Commuting costs to your regular workplace.

• Everyday clothing, even if you wear it for work.

• Expenses fully reimbursed by your employer.

• Items used for both work and personal purposes (e.g., broadband, rent).

For example, if your employer gives you a laptop but you buy a fancier one, you can’t claim the cost. Same goes for washing your uniform at home if your employer provides a laundry service.

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How to Claim Tax Relief and Maximise Your Refund

Right, so you’ve got a handle on what you can claim as a UK employee. Now, let’s dive into the nitty-gritty of how to actually get that money back from HMRC. This part is all about the practical steps, common pitfalls, and some lesser-known tricks to boost your refund for the 2025/26 tax year. We’ll also explore rare scenarios and provide a step-by-step guide to make the process as smooth as a Sunday roast.

How Do You Actually Claim Tax Relief?

Let’s be honest—nobody enjoys dealing with HMRC, but claiming tax relief is simpler than you might think. You’ve got two main options: claim directly through HMRC or adjust your tax code via PAYE. Most employees use HMRC’s online P87 form or the new digital iForm (launched in 2024 for faster processing). If you’re claiming for multiple years or complex expenses, you might need to write a letter or complete a Self Assessment tax return.

Here’s the lowdown on the P87 form:

• Who can use it? PAYE employees claiming work-related expenses up to £2,500 per tax year.

• What do you need? Your PAYE reference (on your payslip), National Insurance number, and details of your expenses (receipts for actual costs, none for flat rates).

• How long does it take? HMRC processes claims within 6–8 weeks, but iForm claims can take as little as 3 weeks (HMRC update, April 2025).

If your claim exceeds £2,500 or involves capital allowances (e.g., for a big-ticket item like specialist machinery), you’ll need to register for Self Assessment. This is rarer but applies to employees like offshore divers or seafarers with unique expenses.

Step-by-Step Guide to Claiming Tax Relief

Now, let’s walk through the process like we’re grabbing a coffee together. Here’s how to claim tax relief using the P87 form or iForm in 2025:

1. Check Your Eligibility: Confirm your expenses are “wholly, exclusively, and necessarily” for work. Use HMRC’s flat rate expense list (available on GOV.UK) or gather receipts for actual costs.

2. Gather Your Details: Grab your payslip for your PAYE reference, National Insurance number, and employer’s name. Note down the tax years you’re claiming for (up to four years back, so 2021/22 to 2025/26).

3. Access the Form: Log into your Government Gateway account on GOV.UK. Search for “P87 form” or “iForm tax relief” to start your claim. No account? Set one up—it takes 10 minutes.

4. Fill in the Details: Enter your personal info, employment details, and expense amounts. For flat rate expenses, select your industry code. For actual costs, upload receipts or provide estimates (e.g., utility bills for home working).

5. Submit and Track: Double-check your entries and submit. You’ll get a reference number to track your claim via your Government Gateway account.

6. Wait for the Refund: HMRC will adjust your tax code or send a cheque/BACS payment. If approved, expect your refund within 6–8 weeks (3–4 weeks for iForm).

Pro Tip: Backdate your claims! If you’ve been a nurse since 2021 and never claimed the £125 flat rate, you could get £100 back (£25/year × 4 years at 20% tax).

Claiming Tax Relief: A Step-by-Step Guide

What About Working-from-Home Claims?

So, the question is: can you still claim for working from home in 2025? Yes, but the rules tightened post-pandemic. You must prove you’re required to work from home, not just choosing a hybrid setup. For example, if your employer has no office space or you’re contractually obligated to work remotely, you qualify for the £6 weekly allowance (£312/year). Alternatively, you can claim actual costs like a portion of your heating, electricity, or internet bills, but you’ll need receipts and a detailed breakdown.

Here’s a table to compare the two options for a 20% taxpayer in 2025/26:

Option	Amount (£/year)	Tax Relief (£)	Proof Needed
Flat Rate Allowance	312	62.40	None
Actual Costs (e.g., utilities)	Varies (e.g., 500)	100	Receipts, calculations

Source: HMRC Working from Home Guidance, updated April 2025

Case Study: Meet Idris, a call centre worker in Cardiff. His employer closed the office in 2023, so he works from home full-time. He claims the £312 flat rate, saving £62.40 annually (20% tax). He also backdated claims to 2021/22, netting £249.60. Idris considered claiming actual costs but found the flat rate easier since he didn’t want to dig through utility bills.

Can You Claim for Rare or Industry-Specific Expenses?

Now, consider this: if you’re in a niche job, you might be sitting on untapped tax relief. Some lesser-known claims include:

• Seafarers’ Earnings Deduction: If you’re a seafarer working outside the UK for 183+ days per year, you can claim 100% tax relief on your earnings. In 2024/25, HMRC processed 12,000 such claims, saving seafarers an average of £3,200 each (HMRC data, March 2025).

• Mileage for Temporary Workplaces: If you’re an agency nurse travelling to different hospitals, you can claim 45p per mile for the first 10,000 miles. For 5,000 miles in 2025/26, that’s £2,250 in expenses, saving £450 at 20% tax.

• Protective Equipment: If you’re a construction worker buying safety gear (e.g., steel-toe boots) not provided by your employer, you can claim the cost. Keep receipts, as HMRC may request them.

What Are the Common Mistakes to Avoid?

Be careful! HMRC’s recent audits (October 2024) show that 15% of tax relief claims are rejected due to errors. Here are the big ones to dodge:

• Claiming Ineligible Expenses: Don’t try claiming your commute or non-specialist clothing—it’ll be rejected faster than a rainy barbecue.

• Missing Receipts: For actual costs (e.g., tools or home office bills), keep records. HMRC can request proof up to six years later.

• Incorrect Tax Years: Double-check the tax year you’re claiming for. A 2025/26 claim covers 6 April 2025 to 5 April 2026.

• Not Backdating: You can claim for the last four tax years, but many forget. For 2025/26, that’s back to 2021/22 (deadline: 5 April 2026).

How Can You Maximise Your Refund?

Now, here’s the fun part—squeezing every penny out of your claim. Try these strategies:

• Combine Claims: Stack multiple expenses (e.g., uniform upkeep, tools, and mileage) to boost your refund. A tradesperson claiming £140 (flat rate), £500 (tools), and £1,000 (mileage) could save £328 at 20% tax.

• Backdate Strategically: If your income pushed you into a higher tax band in past years (e.g., 40% in 2022/23), backdating claims for those years saves more.

• Check Your Tax Code: If you’re overtaxed (e.g., on an emergency tax code like 1257L W1), claim relief to adjust your code and reduce future tax.

Case Study: Kensa, a plumber in Bristol, claimed £140 (flat rate), £600 (tools), and £900 (mileage) for 2024/25. As a 20% taxpayer, she saved £328. She also backdated to 2021/22, adding £984 to her refund. Kensa used GOV.UK’s tax calculator to confirm her tax code was correct, avoiding overtaxing in 2025/26.

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Key Takeaways for Claiming Tax Relief as a UK Employee in 2025-26

Now, let’s wrap things up with the most critical points you need to know about claiming tax relief as an employee in the UK. This section distils everything into bite-sized, actionable insights, ensuring you can confidently navigate HMRC’s rules and maximise your refund for the 2025/26 tax year. Below are the ten most important points, each summarised in a single sentence.

Summary of the Most Important Points

1. You can claim tax relief on work-related expenses like uniforms, tools, travel, and professional fees if they’re incurred “wholly, exclusively, and necessarily” for your job and not fully reimbursed by your employer.

2. The standard personal allowance for 2025/26 is £12,570, with tax relief savings based on your tax rate (20%, 40%, or 45%), so a £100 claim saves £20 for a basic-rate taxpayer.

3. Flat rate expenses, such as £125 for healthcare workers or £140 for construction workers, don’t require receipts and are an easy way to claim tax relief.

4. If you’re required to work from home, you can claim £6 per week (£312/year) without proof or actual costs like utilities with detailed records, saving up to £62.40 or more annually at 20% tax.

5. Business travel to temporary workplaces qualifies for mileage claims at 45p per mile for the first 10,000 miles (cars), potentially saving hundreds depending on your travel.

6. Use HMRC’s P87 form or iForm (via GOV.UK) to claim expenses up to £2,500 per year; claims over this or for capital allowances require a Self Assessment tax return.

7. You can backdate claims for up to four tax years (e.g., 2021/22 to 2025/26), with deadlines like 5 April 2026 for 2021/22, to boost your refund significantly.

8. Rare claims, like the Seafarers’ Earnings Deduction or safety equipment costs, can yield substantial savings for niche professions if you meet HMRC’s strict criteria.

9. Avoid common mistakes like claiming ineligible expenses (e.g., commuting or everyday clothing), missing receipts for actual costs, or incorrect tax year details to prevent claim rejections.

10. Maximise your refund by combining multiple eligible expenses, backdating strategically to higher-tax years, and checking your tax code to avoid overtaxing.

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FAQs

Q1: Can you claim tax relief if you’re on a zero-hours contract?

A1: Employees on zero-hours contracts can claim tax relief on work-related expenses like uniforms or tools, as long as they meet HMRC’s “wholly, exclusively, and necessarily” criteria and are taxed via PAYE.

Q2: Does tax relief apply to part-time employees?

A2: Part-time employees are eligible for tax relief on the same work-related expenses as full-time employees, provided the expenses are incurred solely for their job.

Q3: Can you claim tax relief for training courses?

A3: Tax relief is available for training courses only if they’re directly related to your current job and required by your employer, not for personal development or new career paths.

Q4: Is tax relief available for commuting costs if you work night shifts?

A4: Commuting costs, even for night shifts, are generally not claimable unless the journey is to a temporary workplace and not your regular place of work.

Q5: Can you claim tax relief for meals during work travel?

A5: Meal costs during business travel are not eligible for tax relief unless they’re part of a subsistence allowance for overnight stays at a temporary workplace.

Q6: What happens if HMRC rejects a tax relief claim?

A6: If HMRC rejects a claim, they’ll provide a reason, and you can appeal within 30 days by providing additional evidence or correcting errors via your Government Gateway account.

Q7: Can you claim tax relief for glasses or contact lenses?

A7: Tax relief for glasses or contact lenses is only available if they’re prescribed specifically for work-related screen use and your employer doesn’t cover the cost.

Q8: Is tax relief available for parking fees at a temporary workplace?

A8: Parking fees at a temporary workplace can be claimed as part of business travel expenses, but not for regular workplace commuting.

Q9: Can you claim tax relief if you’re an agency worker?

A9: Agency workers can claim tax relief on expenses like travel to temporary assignments or specialist clothing, as long as they’re not reimbursed by the agency or client.

Q10: Does tax relief apply to expenses incurred abroad for work?

A10: Expenses incurred abroad for work, such as travel or accommodation for a temporary overseas assignment, can be claimed if they’re wholly for work purposes and not reimbursed.

Q11: Can you claim tax relief for childcare costs?

A11: Childcare costs are not eligible for direct tax relief, but employees may benefit from schemes like Tax-Free Childcare or employer-provided childcare vouchers.

Q12: Is tax relief available for mobile phone bills?

A12: Tax relief for mobile phone bills is only available if the phone is used exclusively for work and not reimbursed by the employer, which is rare due to personal use.

Q13: Can you claim tax relief for work-related injuries or health costs?

A13: Health costs or injury-related expenses are not claimable unless they’re for specific work-required medical treatments, like vaccinations for overseas work travel.

Q14: What if you miss the four-year deadline for a tax relief claim?

A14: If the four-year deadline is missed, you cannot claim tax relief for that tax year, as HMRC strictly enforces the time limit.

Q15: Can you claim tax relief for buying a company car?

A15: Employees cannot claim tax relief for buying a company car, as it’s typically provided by the employer, but they can claim mileage for business use of their own car.

Q16: Is tax relief available for union membership fees?

A16: Union membership fees are eligible for tax relief if the union is HMRC-approved and the fees are necessary for your job role.

Q17: Can you claim tax relief for laundry costs if you don’t wear a uniform?

A17: Laundry costs for non-uniform work clothing, like business suits, are not eligible for tax relief, as they’re considered personal expenses.

Q18: Does tax relief apply to expenses from a second job?

A18: Expenses from a second job are eligible for tax relief if they meet the same HMRC criteria as your primary job, and you can claim for both jobs separately.

Q19: Can you claim tax relief for work-related software subscriptions?

A19: Software subscriptions are claimable if they’re required for your job, not provided or reimbursed by your employer, and used exclusively for work purposes.

Q20: What if your employer disputes your tax relief claim?

A20: Employers don’t have a direct role in HMRC’s tax relief decisions, but you may need their confirmation for certain claims, like working-from-home requirements, to support your application.

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About the Author

Mr. Maz Zaheer, FCA, AFA, MAAT, MBA, is the CEO and Chief Accountant of My Tax Accountant and Total Tax Accountants—two of the UK’s leading tax advisory firms. With over 14 years of hands-on experience in UK taxation, Maz is a seasoned expert in advising individuals, SMEs, and corporations on complex tax matters. A Fellow Chartered Accountant and a prolific tax writer, he is widely respected for simplifying intricate tax concepts through his popular articles. His professional insights empower UK taxpayers to navigate their financial obligations with clarity and confidence.

https://www.linkedin.com/in/totaltaxaccountants/

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