HMRC urges workers to claim tax refunds of work-related expenses

HMRC is reminding employed workers to make sure they claim a tax refund for any work-related expenses through the government website.

It is estimated that 70% of claimants in the 2021-22 tax year missed out on getting the full amount owed due to using an agent to make the claim, rather than dealing with HMRC directly. More than 800,000 taxpayers claimed refunds for work-related expenses, with an average claim of £125.

Victoria Atkins, Financial Secretary to The Treasury said:

“Nobody should miss out on the full claim of a tax rebate – and by going straight to HMRC people can avoid being left out of pocket because of unscrupulous repayments agents.

“Thanks to our Spring Budget reforms if someone no longer wants an agent involved in their claim, they’ll be able to cancel it so any future rebates will go to the taxpayer in full.”

Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, said:

“Every penny counts and we want to make sure employed workers are getting what they deserve – their hard-earned cash straight back into their pockets. To make a claim just search ‘employee tax relief’ on GOV.UK. It is the quickest way of getting a tax refund on your work-related expenses and ensures you get 100% of the money back.”

HMRC’s online portal on the Gov.uk website is the only way to guarantee receiving 100% of the tax repayment owed. Submitting a claim takes around 15 minutes, and includes an online tool to check eligibility and the full list of work expenses that can be claimed, which include:

• uniforms and work clothing
• buying work-related equipment
• professional fees, union memberships and subscriptions
• transport costs for work travel (excluding journeys between home and the workplace)

For customers who are considering using a repayment agent, HMRC is reminding them to be aware that an agent always charges for services – in some cases up to 50% of the value of the claim. And while initially it may seem simpler, customers will need to supply the agent with the same information they could use to make the claim themselves using HMRC’s free online portal.