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Flat Rate Expenses for Employees and Tax relief for specialist tools and clothing

Posted by: edwinsmith on February 29th, 2012

As an employee you may be able to get tax relief if you spend money on any tools or specialist clothing you need to perform your job and your employer doesn’t reimburse you. You can go back several years and the time limit depends on whether you have previously submitted self assessment tax returns (see link – on ‘how to claim’ below).

Specialist clothing and Tools

As a general rule an employee can’t get tax relief for the cost of clothing they wear to work but there are certain exceptions dependent on the industry sector e.g. where you require protective clothing (building trade) or your job requires a specific uniform like a nurse or fire fighter. See HM Revenue & Customs: Tax relief for specialist tools or clothing for full details.

If you must pay for the cost of replacing, repairing or cleaning the specialist clothing then you are entitled to relief but you cannot claim the initial cost of buying this clothing.

If as an employee you have to buy – out of your own money – the tools you need to be able to do your own work then you are entitled to tax relief e.g.  As a hairdresser your employer might require you to provide your own scissors or a plumber your own tools. The tax relief also applies to the cost of maintaining and replacing tools.

Flat Rate expenses

If you have to spend money on tools or specialist clothing for your job you may be entitled either tax relief for the actual amounts you spend or a ‘flat rate deduction’.

Flat rate deductions are amounts that have been agreed with HM Revenue & Customs (HMRC). The deductions cover what's typically spent each year by employees in different trades. For example, someone working in the clothing industry can get a deduction of £60 each year or stone mason £120. You'll also benefit from less paperwork - you won't have to keep a record of all the individual amounts you spend. Follow the link below to see a table of agreed flat rate expense deductions Flat rate expense deductions .

If your industry is not listed on the table, you can still claim a standard amount of £60 for the laundry costs of uniforms or protective clothing.

How to claim tax relief

If you do not complete a self assessment tax return then you will need to contact HMRC by letter or phone and provide HMRC with various details about your employment, expenses being claimed for, industry sector, occupation etc. See HM Revenue & Customs: How to get allowances and reliefs - employees or directors for full details on making a claim and time limits for getting tax relief.

Please contact us if you require any assistance.

Filed under: PAYE, Tax