Reasons you Could be due a Tax Rebate

Tax refunds are good news for everyone and leaves you feeling more than happy to hear from HM Revenue & Customs.

In many situations overpayments of tax occur without the Taxpayer knowing, or even HMRC having any knowledge. Because of this, they never get paid but get swallowed up by the Tax office over time. You don’t even need to register for a UTR number to get one either.

Why does this happen?

The reason is fairly simple, overpayments usually occur when the Taxpayer has not made a relief claim for certain items or expenses. Furthermore, a lot of the relief claims are not automatic, they must be made manually. In this article, we will go through the three  most common reasons why you could be due a tax rebate, and why they don’t happen naturally.

When reviewing the different reasons for tax repayments, please also bear in mind that it’s possible to go back four tax years to make a tax relief claim. With this in mind, we have accumulated a couple of the main reasons that you could be entitled to a tax rebate. 

Unclaimed allowances for Maintaining your work uniform

This is probably the most common area of undiscovered tax rebates. HMRC understand that it is the requirement of workers to clean and maintain their own work uniform, and obviously, this comes at an expense. From washing powder to the cost of the washing machine itself, HMRC recognises that there are costs involved in cleaning workwear.

Expenses for work equipment or tools

There are various situations where an employee might have to pay for tools and equipment, necessary for their job. These necessary expenses are Tax deductible which means that you are entitled to tax relief. Some examples of work-related expenditure for tools & equipment:

  • Knives for chefs
  • Clippers for hairdressers
  • Trowels for bricklayers
  • Multifunction testers for electricians

Expenses Suffered for PPE

As noted above, there might be certain jobs or positions that (legally) require the use of PPE. The main area where this would apply would be for construction trades, such as bricklaying, scaffolding, civil engineering, and a job that requires the worker to be wearing personal protection gear.

Sometimes, but not always, the employer would cover these expenses. If not, then you would have an allowable tax relief claim.

Here at Bonnar & Co we are experienced accountants understand the UK’s tax system inside out, and provide some of the best accountancy services in Birmingham. For more information about how we can help you make financially beneficial choices, get in touch today.