Don’t miss out on a tax refund for work expenses, HMRC urges

The HM Revenue and Customs (HMRC) is urging employed workers in the UK to claim refunds on work-related expenses directly through the official portal on GOV.UK, ensuring they receive the full amount owed.

During the 2021 to 2022 tax year, over 800,000 taxpayers applied for work expense refunds.

The average claim was £125, yet over 70% of claimants missed out on their full entitlement.

 

This shortfall resulted from individuals using an agent to facilitate their claim instead of liaising directly with HMRC.

The Financial Secretary to The Treasury, Victoria Atkins, emphasised that nobody should miss out on a full tax rebate.

She warned against unscrupulous repayments agents, advising taxpayers to go directly to HMRC to avoid financial loss.

Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, stated, “Every penny counts and we want to make sure employed workers are getting what they deserve.” He highlighted that searching ’employee tax relief’ on GOV.UK is the quickest way of obtaining a tax refund on work-related expenses.

Submitting a claim through HMRC’s online portal is straightforward, typically taking around 15 minutes.

The portal provides a comprehensive list of work expenses eligible for claiming, including uniforms, work-related equipment, professional fees, union memberships, subscriptions, and work travel costs (excluding home-to-work journeys).

For customers considering using a repayment agent, HMRC issued a cautionary reminder.

While such a route may initially appear simpler, agents always charge for their services – in some cases up to 50% of the value of the claim.

This could significantly reduce the amount of tax refund a customer receives.

HMRC advises customers to research the company and carefully read the small print before signing a contract with a repayment agent.

They also emphasised the ease and benefit of using the free HMRC online portal to claim directly.

Further information about work-related expense claims can be found on the GOV.UK website.