1. Mileage. If the mileage allowance that your employer pays you is less than the HMRC rate, you are able to claim the balance. The first 10,000 business miles, according to HMRC, can be claimed at a rate of 45p per mile. Over 10,000 miles the allowable HMRC rate drops to 25p per mile.
2. Working from home. If you are required to work from home by your employer or have a home working agreement in place with them, you are entitled to claim a home working allowance. This is to help with increased household costs because of business use, such as electricity, gas, phone. The amount you can claim at present is £6 a week
3. Charitable contributions. If you are a higher rate taxpayer and have made gift-aided charitable donations, you can claim tax relief on them. For example, if you donated £200 to charity, the total donation would be £250, so you can claim back £50 if you pay tax at 40%.
4. Clothing and Tools. If you work in certain industries, such as the building/ metalworking industries, you may have to use uniforms, specialist or protective clothing, gloves, etc. You can claim tax relief on the maintenance/ cleaning/ replacement of these items, but you can’t claim for the initial cost of buying the items.
5. Professional fees and subscriptions. You can claim tax relief on professional fees, membership fees, subscriptions, etc. if they are necessary or beneficial for your work.
6. Capital Allowances. If you have to buy equipment for work, that your employer does not pay for, you may be able to claim capital allowance tax relief. The example HMRC gives is of a filing cabinet purchased by an employee for work, but not paid for by the employer. You can not claim relief for motor vehicles.
7. Marriage Allowance. If you are a Basic Rate Taxpayer and your spouse has income below the Personal Allowance ( £12,500 for 2019/20 and 2020/21, £12,570 for 2021/2020), they can transfer 10% of their Personal Allowance to you.
8. Pension Contributions. If you are a higher rate taxpayer, you may be entitled to Higher Rate Tax Relief on your Pension Contributions.
9. Rent a Room Relief If you are an employee who also lets out a room in your home, you can earn up to £7500 tax-free under the Rent a Room Scheme.
10. The way you receive tax relief for your work expenses depends on the amount of your claim. Claims up to £2,500. If your claim is £2,500 or less, HMRC normally gives you relief for your expenses through your tax code straight away. If you claim an estimated figure, they will review it at the end of the year. They will make any adjustments that are needed in your tax code for the next tax year. Claims over £2,500. If your expenses claim is for more than £2,500, HMRC will give you relief in your tax code for the current year and for the next one – and send you a tax return to fill in. Record keeping You must keep proof of all expenses, bills, and the mileage you are claiming for. HMRC may ask you for proof of both the expenses and their business use. Contact Oasis Accountants – 07894167410 The deadline for the 2020-21 self-Assessment is 31st Jan 2022 to file and pay the tax liability. 07894167410