All our PAYE people stand up \ud83d\ude4c<\/p>\n\n\n\n
If you pay your salary through PAYE<\/a> and you have expenses<\/a> that your company or employer does not reimburse you for, you could be eligible to claim them back. Isn\u2019t that just the best news you\u2019ve heard all day?<\/p>\n\n\n\n Usually, you hear about self-employed people or businesses claiming expenses. Well, we\u2019re here to tell you that even if you\u2019re an employee, you can still claim for expenses (if you\u2019re eligible, of course). Hurray!<\/p>\n\n\n\n There are a few specific situations we\u2019ll get into, but first, let\u2019s make sure you know the basics.<\/p>\n\n\n\n PAYE stands for pay-as-you-earn. It\u2019s a way to pay your Income Tax<\/a> and National Insurance<\/a> through your salary as an employee. <\/p>\n\n\n\n Your employers will pay HMRC what you owe directly based on your tax code<\/a>. <\/p>\n\n\n\n Your employer will use your P45<\/a> or the New Starter Checklist (if it\u2019s your first job or you\u2019ve lost your P45<\/a>) to determine your tax code. <\/p>\n\n\n\n Next, they\u2019ll take out the taxes you owe from your monthly salary and send it to HMRC on your behalf. You\u2019ll receive a P60<\/a> from your employer with details of the payments they made to HMRC, your income and earnings, and all that good stuff over the tax year (6th April – 5th April). <\/p>\n\n\n\n HMRC\u2019s favourite saying when it comes to expenses is \u201cwholly, exclusively, and necessarily\u201d. Basically, anything you\u2019re claiming back as an expense has to be an actual requirement to do your job. Without whatever it is you\u2019re trying to expense, you wouldn\u2019t be able to do your job properly. <\/p>\n\n\n\n Sounds dramatic, but hey, that\u2019s HMRC for you.<\/p>\n\n\n\n So claiming the cost of your Netflix subscription because you watch it during your lunch break won\u2019t make the cut, sorry! <\/p>\n\n\n\n Rule number 2 is that you can\u2019t claim expenses on anything that your work reimburses you for. Pretty straightforward\ud83d\ude4b\u200d\u2640\ufe0f<\/p>\n\n\n\n What you can claim completely depends on what you do for work. Here are some common expenses you might be able to claim as a PAYE employee:<\/p>\n\n\n<\/div> \n\n Travel expenses<\/a><\/strong><\/p>\n <\/strong><\/p>\n <\/strong><\/p>\n If you travel for work, you can claim the costs for fuel, bus or train fares, mileage, parking fees, tolls, etc.<\/p>\n\n <\/div>\n <\/div>\n <\/div>\n\n \n \n Uniforms\/work clothing<\/a><\/strong><\/p>\n If you have to wear a uniform or protective clothing specifically for your job, you can claim back the costs of buying, repairing, or cleaning.<\/p>\n\n <\/div>\n <\/div>\n <\/div>\n\n \n \n <\/div>\n<\/div> \n\n Tools and equipment<\/strong><\/p>\n If you buy tools or equipment you need for work, you can claim the cost of buying and maintaining them. These tools must be essential for work and cannot have been provided to you by your employer or contractor.<\/p>\n\n <\/div>\n <\/div>\n <\/div>\n\n \n \n Professional fees\/subscriptions<\/a><\/strong><\/p>\n If you\u2019re a member of a professional organisation related to your job you can expense your membership fees. You can also expense the costs of subscriptions or publications you have to subscribe to for work.<\/p>\n\n <\/div>\n <\/div>\n <\/div>\n\n \n \n <\/div>\n<\/div> \n\n Training or Education<\/strong><\/p>\n If you need to take courses or go to training sessions for work, you can claim back the cost of them.<\/p>\n\n <\/div>\n <\/div>\n <\/div>\n\n \n \n Work-related phone\/internet costs<\/strong><\/p>\n If you have a phone specifically for work or even use your personal phone for work, you might be able to claim some or all of the costs associated with it.<\/p>\n\n <\/div>\n <\/div>\n <\/div>\n\n \n \n <\/div>\n<\/div> \n\n Remember, these all have to be exclusively related to your job and your employer can\u2019t have reimbursed you for any of it. And there can be more! The expenses depends on what you do for work, so this list isn\u2019t exhaustive.<\/p>\n\n <\/div>\n<\/div> \n\n There are two ways you can do this. <\/p>\n\n\n\n The first way is to get PAYE tax relief through the P87 form<\/a>. After you send it to HMRC, they\u2019ll change your tax code which will let you take home more of your salary, essentially paying less in tax – woohoo!<\/p>\n\n\n\n It\u2019s usually paid back in small increments. But, there are requirements! Double check you qualify for PAYE tax relief\ud83d\udc47:<\/p>\n\n\n\nWhat is PAYE?<\/h2>\n\n\n\n
How does PAYE work?<\/h2>\n\n\n\n
What are the rules for HMRC\u2019s expenses for work?<\/h2>\n\n\n\n
So what expenses can you claim as a PAYE employee?<\/h2>\n\n\n\n
How to claim your expenses<\/h2>\n\n\n\n
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