Employees have limited expenses which can be claimed and they need to be incurred “wholly and exclusively” in the performance of their duties.
Expenses that serve a dual personal and business purpose are not claimable.
An example is ordinary clothing worn at work. Clothing that is worn both in work and out of work obviously has a dual purpose and so no deduction is allowed. However, even if the clothing is only worn at work no deduction is allowed. This is because at one and the same time the clothing has the purpose of providing cover and comfort to the employee as well as the purpose of being suitable for work. Work uniforms, professional fees and subscriptions and tools are claimable though if not paid for by the employer.
There are flat rate expenses agreed with HMRC for many occupations.
The easiest way for employees to claim is online here. A government gateway will be required though. However, claims can be made by phone and post.
If they are paid business mileage allowances from the business but this is below the HMRC approved rates of 45p for first 10000 miles and 25p thereafter, they will be able to claim the difference between the approved rate and the rates actually paid.
If you require further information about employee expenses please contact us today
