How to Claim Work Expenses on Your Tax Return

Claiming work expenses on your tax return is one of the easiest ways to reduce the amount of tax you pay. Unfortunately, many people miss out on legitimate claims, or simply don’t know what they can claim. So whether you’ve built up travel costs, had to buy equipment or spent money elsewhere as part of your job, here’s everything you need to know.

HMRC’s rules around what you can claim as a work expense (and how to claim it correctly) are tricky to understand. You may know that you can claim for travel or working from home costs, but what about records? Digital vs paper receipts? And how do you actually tell HMRC about your expenses? In this guide, we walk you through the rules, allowable expenses, and how to file your expenses.

 

What are work expenses?

Work expenses are out-of-pocket costs you’ve spent that are wholly, exclusively and necessary to do your job. This can include everything from travel costs and office supplies, to uniforms and equipment.

If your employer hasn’t reimbursed you, you may be able to claim it back in tax relief.

HMRC list allowable expenses as:

• Travel costs ( like fuel, train tickets, parking for work trips)
• Work uniforms / or protective clothing ( and cleaning them)
• Professional fees or subscriptions (if required for your role)
• Working from home expenses (only if your job requires it and your employer requires you to)

Rule of thumb:
To claim this tax relief the expense must be wholly, exclusively and necessarily for your work, it must be paid by you, not your employer and has not been reimbursed by your employer.

 

Claiming work expenses on your tax return

There are two main ways to claim:

1. Claiming through Self Assessment

If you already complete a tax return each year, claiming your expenses is simple:

1. Log in to your HMRC account
2. Navigate to employment expenses (or job expenses)
3. Add your total allowable expenses
4. Submit your tax return

Claiming over £2,500 will require you to complete a Self Assessment.

 

2. Claiming via a P87 form

If you’re employed and you are otherwise not required to complete a self-assessment tax return, and your expenses are under £2,500:

1. Fill in a P87 form online or via post
2. Avoid having to complete a tax return
3. Expense mileage on a tax return

Claiming Mileage Allowance is a common work expense. It applies if you’ve used your personal vehicle for work purposes (travel that doesn’t include your commute).

HMRC mileage rates:

• 45p ( for the first 10,000 miles)
• 25p (after 10,000 miles)
• 24p – Motorcycles (all miles)
• 20p – bicycles (all miles)

You can claim +5p per mile per passenger (if carrying colleagues for work).

 

How mileage claims work

If your employer pays less than HMRC’s mileage rates, you can claim the difference through your tax return. If they pay nothing, you can claim the entire amount. You can claim for trips between workplaces, travel to temporary sites and business journeys during work

You can’t claim if your employer already pays the HMRC-approved rate.

Example: You drive 5,000 miles for work

5,000 x £0.45 = £2,250 allowable amount

Your employer paid you £1,500 → you can claim relief on £750

 

Do you need receipts for mileage claims?

No, mileage claims are different from other expenses because HMRC doesn’t expect you to keep fuel receipts. HMRC mileage rates are designed to cover all vehicle costs including fuel, maintenance, insurance and wear and tear.

You must keep a mileage log as evidence of your business travel to include:

• Date of each journey
• Start and end locations
• Purpose of the trip (work-related reason)
• Number of miles travelled

 

Filing work expenses with receipts

The majority of expenses will require you to keep receipts or proof of purchase.

Best Practice for Filing Expenses:

• Keep all expense receipts (digital or physical)
• Record the date, amount and reason for each expense
• Retain documents for at least 4 years (HMRC can request evidence during this time)
• Keep Bank or card statements (as backup evidence)
• Organise by category

 

What travel expenses can I claim?

When travelling for work, you can claim:

• Public transport costs (train tickets, bus or tram fares, tube/metro travel)
• Hotel bills
• Food when on overnight business trips (reasonable costs)
• Parking fees, toll roads and congestion charges
• business phone calls and printing costs

You cannot claim your commute to your regular place of work, any personal travel, fines or penalties (parking fines, speeding tickets)

 

Common Mistakes to Avoid

• Claiming for commuting
• Not keeping proper records
• Forgetting to deduct employer reimbursements
• Missing deadlines

 

Commonly Asked Questions

How do I claim work expenses on my tax return?

You can claim work expenses by reporting them to HMRC. If you’re already completing a Self Assessment tax return, you can add your allowable expenses to the employment expenses section and submit.

Alternatively, if your expenses are under £2500 and you’re employed, you can fill in a P87 form online, without the need to complete a full tax return.

 

Will HMRC deduct my expenses from my tax owed or adjust my tax code?

HMRC will either adjust your tax code (if you’re still working) or issue a tax rebate. How they handle your claim depends on your circumstances, as well as how you claim.

If you submit through self-assessment your taxable income is reduced by your expenses, HMRC will recalculate your tax and you will either get a refund or pay less tax overall.

HMRC may adjust your tax code so you get relief automatically through your salary. This is common if you claim through P87 and your expenses are regular and ongoing ( uniform, working from home)

 

Can I claim mileage on my tax return if I’m employed?

Yes, you can claim mileage as an employee if you use your own vehicle for work journeys, and are not fully reimbursed.

This includes any work journeys that are not your normal commute, such as visiting clients or driving between work sites.

 

Do I need receipts for work expenses?

With the exception of mileage claims, you should keep receipts for work expenses. Keeping evidence of purchase will support your claim if HMRC ever ask to see it.

 

How do I file work expenses when I have receipts?

If you’re keeping proof of purchase for your expenses, add up your total allowable costs and include them on your tax return.

Keep your digital copies in a spreadsheet or document and keep any paper documents stored securely. Make sure you also keep notes on why you spent the money.

You’ll need all of this for your records in case HMRC asks to see evidence of your expenses.

 

Can I claim working from home expenses?

If you’re required to work at home, you may be able to claim tax relief on household expenses. This includes costs for heating, electricity, office furniture, and broadband amongst others. You cannot claim rent or mortgage, council tax or full broadband costs.

Employees can either claim the flat rate of £6 per week ( no receipts needed) which is £312 per year total or claim a proportion of their expenses but you must keep bills and show how you calculated the work portion.

 

Can I claim travel expenses on my tax return?

You can claim necessary travel costs that relate to your job. This includes costs for public transport, hotel bills, meals on business trips and overnight stays. Parking fees, toll roads and congestion charges can also be claimed.

Your normal commute to work is not included. 

 

How far back can I claim tax expenses?

You can usually claim back the previous two tax years, but keep in mind that you’ll need to submit a separate claim for each tax year you want to claim expenses for. There is a separate process (overpayment relief claim) for going back further and claiming back overpaid taxes for up to the previous 4 tax years.

 

What happens after I file a claim?

HMRC will assess your claim and adjust your tax code, or issue you a refund. This can take a few weeks depending on your circumstances.

Claims made online are usually processed faster than paper claims.

 

Need help with work expense claims?

If you want to make sure you’re claiming the maximum amount of allowable expenses, get in touch with us for help and advice.

Our team of tax experts can help maximise your tax efficiency and keep you compliant with HMRC regulations.