HMRC offers tax relief to employees who have not been
reimbursed by their employer. Unclaimed expenses, such as uniforms, business
travel, professional fees or working from home, can be worth a lot of money to
In the five years to 2014-15, the cost of this tax relief
has increased by a quarter, to an astounding £800m!
There could be several reasons for this increase, including
increased awareness that a tax refund is possible, and HMRC’s efforts to simplify
the claiming process. Claims can be made using a Self-Assessment Tax Return, (online
or by phone), or for claims up to £2500, using form P87.
However, as a result, HMRC are now set to investigate,
which will involve input from employers. Currently this is a means of
understanding the claims more clearly, but accountants have warned that ultimately,
there could be changes.
See the MyExpensesOnline expense management solution, for
transparency and simplicity in staff expenses.