People working from home may be due hundreds from HMRC, tax expert says

A tax expert is urging people to check if they might be due hundreds of pounds back from HMRC, some of which can be backdated forming a hefty tax refund. All combined, these five common, and often forgotten, tax reliefs for working people can total over £500 a year in certain circumstances.

Lee Murphy, managing director of The Accountancy Partnership, explained: "The rules are generous in some areas, and you don't have to be an accountant to benefit from these types of tax reliefs; you just need to know exactly what you can claim.

"These are the five most common tax reliefs we see people forget about, and some people can get hundreds of pounds back per year that they've been missing out on."

Remote workers

Those who work from home may be entitled to up to £62 of tax relief annually, provided their employment satisfies certain strict criteria. More information on this tax relief can be found on the Gov.uk website.

Their workplace must either lack an office or their contract must stipulate they are required to work remotely. Essentially, people with the choice to work remotely or in a hybrid arrangement probably will not qualify. If you do qualify, you could reclaim a flat rate of £6 weekly from HMRC to help offset extra expenses such as heating, lighting and Wi-Fi.

Professional fees

Murphy explained: "If you have to pay a membership fee to be part of a professional body or trade union in your role, then you can claim this cost back. Of course, this varies industry-by-industry, but workers should typically be able to claim back £50-150 each year.

"For example, nurses that are paying the NMC fee or engineers who have to pay a membership to their professional body will be able to claim this back. If your employer has paid for this themselves, then you won't be able to reimburse this."

The HMRC website contains a comprehensive list of approved subscriptions and professional bodies that qualify for this relief.

Uniformed work

Workers required to wear a uniform may be entitled to as much as £60 annually in tax relief, provided they bought the uniform with their own money. More information can be found on the Gov.uk website.

Murphy explained: "You can either claim the actual amount you've spent on the items, or your role might have a 'flat rate expense' in which it's worth checking beforehand. The tax relief will reduce the amount of tax you pay on the clothing. For example, if you claim a flat rate expense of £60 and pay the basic tax rate of 20%, then you'll pay £12 less tax."

Specialist equipment

Workers who must supply their own tools or equipment, such as scissors for hairdressers or power tools for electricians, may be eligible to claim some tax relief on these purchases.

The expert cautioned that the amount returned will differ from person to person, but workers can typically claim back between £50 and £100 annually, as long as the tools aren't used significantly for personal purposes. More information can be found on the Gov.uk website.

Travel expenses

If you are required to travel to a location not specified in your contract, you might be eligible to claim back travel or mileage costs. This could include journeys to clients, conferences, off-site meetings or even team-building events.

The expert emphasised the importance of keeping receipts, even for parking charges, and pointed out that cyclists can also claim some mileage for off-site visits. If your travel involves an overnight stay, certain additional costs can be expensed.

However, if your employer doesn't reimburse you, these could be claimed back from HMRC instead. More information can be found on the Gov.uk website.