employee expenses

Can my staff claim tax relief for employment expenses?

Yes, in most cases employees can get tax relief on any expenses that they incur while doing their job (so long as the employer hasn’t reimbursed the employee).

Can employees claim travel expenses?
Employees can usually get tax relief on the cost of business journeys and travel expenses incurred as part of their job when these aren’t paid for by their employer. To qualify, the journey must be a business journey and not their normal home to work journey. Visiting a client at the other end of the country for business or attending a business meeting at a client’s premises is okay. The cost of public transport, parking, food, drink and overnight accommodation for such journeys can be claimed so long as it’s reasonable and necessary.

If employees use their own car for travel, can they claim?
Yes, employees can claim business miles at a rate of 45p for the first 10,000 business miles travelled and 25p per mile thereafter. If the employer reimburses at less than these rates they can claim the difference.

Can employees claim for professional subscriptions?
Yes, so long as the subscriptions are paid to an approved professional body and are necessary or helpful to their job, and the employer hasn’t met the cost.

Can employees claim anything for working from home?
If an employee works from home, they may be able to claim relief for the additional costs incurred as a result, such as additional electricity and gas used. Alternatively, employees working from home can claim a flat £4 a week for working from home without needing to provide evidence.

NB If the employer meets some but not all of the cost of an expense, the deduction claimed must be reduced by the amount reimbursed by the employer.

How can employees make a claim?
Tax relief for employment expenses can be claimed via the self-assessment tax return. If the employee doesn’t usually complete a tax return and the claim is not more than £2,500, they can claim online using this link.

If you have any questions about employee expenses, feel free to get in touch.

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