News & Views from MyExpensesOnline

Expenses to be Probed by HMRC

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 the employee.


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.