HM Revenue and Customs (HMRC) is urging eligible people to claim a tax refund directly from the tax department.
Employees may be eligible to claim a tax refund on work-related expenses, with an average claim worth £125 per year.
This includes a tax refund for:
- Cleaning, replacing or repairing a uniform or work clothing
- Using their own vehicle for work including business mileage
- Professional subscriptions they’ve paid for, that are needed to do their job.
People who need to clean, replace or repair their work uniform could be eligible for a tax refund
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HMRC said whether a person works in hospitality or retail, has taken on a seasonal second job as a delivery driver, or even become Santa’s elf for the month, it could be possible to claim, and keep, all of a tax refund via HMRC’s online service.
It takes around 15 minutes to claim via the online tool, HMRC said.
Suzanne Newton, HMRC’s Interim Director General for Transformation, said: “Christmas can be an expensive time of the year and for many, it could be a good opportunity to claim a tax refund on work expenses to boost finances.
“Latest figures show the average claim is £125 a year.
“But the only way to guarantee receiving 100 per cent of your eligible refund is by claiming direct through HMRC. Just search ‘tax relief for expenses’ on GOV.UK to find out more.”
Customers may need to set up an account via Gov.uk, and once they’ve signed into the HMRC service, they simply need to follow step-by-step guidance to submit their claim.
HMRC is urging people to be aware that if they use a tax agent to make the claim, they are likely to be charged a fee.
In some cases, companies charge up to 50 per cent of the value of the claim, despite it being easy to do by oneself.
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It takes around 15 minutes for eligible people to claim via the online tool, HMRC said PAAdditionally, some could find themselves owing the company money if the claim isn’t successful.
HMRC warned: “If the claim is found to be ineligible, customers are liable to pay back the full amount of the refund, not the amount they finally received, so could end up out of pocket.”
While asking an agent to claim could seem simpler, employees must supply the agent with the same information needed to make the claim themselves using HMRC’s free online service.
The tax department urges those who choose to use an agent to claim on their behalf to check the small print before signing a contract.
This includes researching the company to ensure they understand what commission is being charged and how much of their tax refund they are likely to get.