Working for an employer Tax-deductible expenses
You might be able to claim expenses tax-free
When working out tax on your earnings, you can deduct a sum equal to any amounts you have spent on qualifying travelling expenses or other amounts incurred ‘wholly, exclusively and necessarily’ in the performance of the duties of your employment. This applies both where:
- You have paid the expenses yourself without any reimbursement, and
- Your employer reimbursed the expense and you were taxed on the reimbursed amount.
Expenses you might claim
Your employer may reimburse some expenses tax-free – for example, mileage allowance within limits, and expenses for which your employer has a formal agreement with HMRC (a dispensation). In that case, there is no tax to reclaim, so you do not deduct these expenses when working out your tax bill.
Expenses you can claim might include:
- Business travel (but not commuting between home and your normal workplace).
- Reasonable hotel and meal expenses on business trips.
- Unreimbursed mileage if you use your own car for work, up to the HMRC-approved mileage allowance (40p a mile for the first 10,000 miles, 25p a mile after that). If you have been reimbursed less than this, you can claim relief on the difference between what your employer paid and the HMRC rate.
- Protective clothing, uniform and other work-related items necessary for your job. In some cases, the Revenue has agreed that workers in particular occupations can deduct a flat-rate allowance – for a HMRC has a list of clothing expenses you can claim.
- Fees and subscriptions to some professional bodies, if membership is necessary to do your job.
- Some heating, lighting and telephone costs if you have to work at home (these are very restricted).
If you are eligible for any reduction, your tax code will normally be adjusted to reduce the amount you pay. To arrange this, you should contact your tax office or claim on a tax return if you get one.
See HMRC helpsheet HS207 Non-taxable payments or benefits for employees for details.
- For any tax query, call our experts on the Which? Money Helpline
- Take a look at our guide to your rights if made redundant
- Filling in a tax return? Read our full expert guide
