HMRC suggests familiarising yourself with certain rules to avoid being left out of pocket
HM Revenue and Customs (HMRC) has issued a warning to employees who might risk losing thousands of pounds by not verifying their eligibility before claiming work expenses. The government body highlighted that numerous workers could be ensnared by online ads and tax refund firms falsely promising eligibility for work expense claims, in exchange for a portion of the refund.
However, if an employee fails to confirm their eligibility prior to making a claim, they may have to repay the entire amount, potentially leading to a bill running into thousands of pounds. As part of the government’s Don’t Get Caught Out campaign, a hypothetical scenario was presented featuring a worker named Mike.
In this illustrative tale, based on real-life incidents, Mike lodged a claim with a refund company that suggested he could reclaim £4,000 from HMRC for work-related expenses. The firm pocketed £1,600 as its fee, while Mike received the remainder.
However, a year later, HMRC informed him that he wasn’t eligible for the expenses and had to repay the full £4,000 plus interest.
How to check if you’re eligible for a tax refund
Tax refunds can be claimed for various items, including tools, travel costs, and work uniforms and more:
It’s free and relatively quick to check your eligibility, which is highly recommended, even if you opt to use an agent or tax refund company.
You might also need to furnish proof to HMRC to validate your eligibility for the claim, such as receipts for expenses. So, make sure you have these handy before filing a claim. You can do a swift check via GOV.UK here..
What cannot be claimed for work expenses
It’s crucial to remember when perusing an advert or consulting an agency for work-related refunds that several items are not claimable as expenses. For instance:
If you believe you’ve made an illegible tax refund, you should contact HMRC as soon as possible as they can provide extra support to customers who need it.
