Every single household in the UK has felt the economic squeeze of the past few years. Wages do not seem to have increased, yet tax rises and inflation have really put pressure on homes. Most people struggle financially and are looking for ways to either save money or make the most of what they have.
What many people might not be aware of are the types of employment expenses which may be claimed which can result in a tax rebate and lower tax going forward. If an individual is in full-time employment, they usually receive a full tax free personal allowance of £8,105 per annum. This allowance usually has deductions for benefits in kind, such as private medical insurance or a company car.
However, these allowances do not always include additions to the personal allowance to allow for expenses which they incur as part of their employment, but which are not reimbursed by their employer. In order to qualify as an employment expense for these purposes, the expenses must be incurred 'wholly, exclusively and necessarily in the course of employment.'
This means that when making such a claim, an individual has to be very careful about the type of expense that is applicable.
For example, some individuals who have to wear smart work wear, such as suits, sometimes believe that they are able to claim for the cost of buying these suits. They believe this because they argue that they would not ordinarily buy such clothes but for the requirement to wear smart clothing. However, under tax case law, such clothing is not allowable and as such the cost of purchasing suits can never be claimed as an employment expense. This is because the clothing has a 'duality of purpose'. The alternative would be to go to work naked, which no sane, rational employee would do.
However, as with tax laws, there are differences which mean that other types of clothing will be allowable to claim for tax purposes. As an example, where a job requires certain protective gear, such as boots or high visibility clothing for health and safety reasons, the cost of the gear may be tax deductible. Where an employee is responsible for providing such equipment, they may make a claim against their tax.
Another instance where it is possible to claim for clothing in the workplace is where an employer stipulates that an employee must wear a specific uniform. This includes employees such as supermarket and post office workers.
The important thing to remember is that such costs can only be claimed against tax where they are not reimbursed by the employer.