Top 10 tax refund tip-offs
BRITONS failed to claim a staggering £20billion of tax refunds in the last year, adding to the pressure on household finances as living costs soar.
Nobody wants to pay more tax than is necessary, especially today, so it pays to claim all the tax benefits you can, said Tommy McNally, founder of tax-refund app Tommys Tax: “That money is rightfully yours but the process can seem complicated and convoluted, and most people cannot afford expert advice.”
The average employee on PAYE can claim £600, rising to £2,800 for construction workers, but it could be more as any claim could go back four years. What you can claim depends on your circumstances, but both employees and the self-employed may be eligible for at least some of the following 10 tax refunds.
Food costs: If you travel more than 1.5 hours a day to work, leave home before 6am, or work past 8pm, you could be eligible to claim a refund on food costs. The maximum you can claim is £7.50 a day, five days a week.
You can claim if travelling and staying overnight, or travelling to more than one location, but not for travelling to and from work, McNally said.
Travel expenses: Those who travel regularly for work can claim refunds on their expenses, provided they travel to two different locations. “This applies where your employer does not cover these expenses with a company car or fuel card,” said McNally.
Hotel accommodation: Workers can also claim a tax return for staying in hotels for work-related trips such as conferences, work parties and training courses. It also applies when travelling to a temporary place of work, a benefit commonly used in the construction industry.
Uniform refund: If you wear a uniform for work, you can claim a maximum of £16 a week for the cost of washing it. Many people do not realise and miss out.
Training costs: If your employer does not foot the bill, you can claim work training costs against tax.
This could apply to training you need to perform duties, such as a health and safety course, or a refresher course to boost your skills and knowledge.
Mobile phone usage: If you use your mobile to make work-related calls, texts or check emails, you can receive a tax refund on any costs.
Electronics: You can claim a refund on laptops, printers and any other stationery costs, if required primarily for work rather than private use.
Working from home: Employees may be able to claim if they have to work from home because they live too far away from their office, or if their employer does not have an office at all. “You can also claim a refund on your gas and electricity and broadband bills, but only if used for your work,” McNally said.
Professional fees: Workers may also claim back fees if they belong to a professional body or trade union. “If you have to pay a fee to perform your duties, as nurses, construction workers and others often do, you can claim a tax refund,” said McNally.
Payroll fees: Small business owners can claim a tax refund on payroll admin fees, if their company hires a specialist payroll firm.