HMRC has been under pressure recently as a result of the coronavirus crisis, but is still processing its usual claims alongside the variety of schemes made available by the government to help during this time. However, particularly for those who are experiencing financial difficulty, there is one source of additional income which can be derived from the government. Tax repayments are available to many Britons who are employed under a PAYE scheme.
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This sort of relief is available from a wide range of expenses, and may in fact be more likely with many people working from home during lockdown.
Express.co.uk spoke exclusively to Joseph Ivory, Personal Tax Manager at Dyer and Co, who explained many workers can approach HMRC directly to claim tax relief.
He said: “PAYE employees can claim tax relief on any business related expenses that they incur which are not reimbursed by employers.
“If expense is incurred wholly for their duties, and it isn’t reimbursed by their employer, an employee can claim tax relief on that.
“This has the effect of reducing their taxable income on paper, which means they have effectively overpaid on their PAYE income.
“Examples of this can include uniform costs, professional fees and subscriptions, and working from home, for example, claiming a proportion of household bills – such as gas and electricity.
“Employees can claim 45p per business mile from the government. Some employers would reimburse this at 45 percent meaning they cannot claim more, however a lot of employers would do this at their own approved rate.
“If there is a difference between the 45 percent and what the actual employer reimburses then tax relief is available.”
Mr Ivory explained it was important for Britons to get in touch with their employer to understand their rate.
Over the course of the year, he added, small costs could add up to make a significant return.
He stressed workers should check if they are incurring expenses that they are not reimbursed for.
In this case, HMRC can be contacted directly, and a tax refund claimed.
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While tax refunds are usually calculated and can be reimbursed at the end of a tax year, the earlier a claim is submitted the better.
This could also provide Britons with additional income they may need to assist them during the coronavirus crisis.
Similar tax refunds are also available for those who fall into the higher rate taxpayer bracket.
People can claim tax relief on charity donations if they are a higher rate taxpayer, and pension contributions for this group may also be subject to tax relief.
The government states some types of tax relief can be received automatically, however, others must be applied for.
Tax relief also applies to maintenance payments to a former partner or spouse, and also for time spent working at sea outside of the UK.
To claim tax relief, Britons must have paid tax within the year, and will receive tax relief based on what is spent, and their personal tax rate.
Claimants must submit a claim within four years of the end of the tax year where the money was spent.
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