How can employees can claim tax relief for the employment expenses they incur as part of their jobs?
This is a freeview 'At a glance' guide to employees claiming tax relief for employment expenses.
At a glance
Income Tax relief has to be claimed by an employee if incurred for job-related expenses.
- From 6 April 2026, Income Tax relief on homeworking expenses can no longer be claimed by the employee directly from HMRC.
- The employer can still reimburse these free of Income Tax and National Insurance Contributions (NICs).
Only taxpayers can obtain tax relief. The expense must have been:
- Incurred personally and not reimbursed by the employer.
- Incurred 'wholly, exclusively and necessarily' in the performance of the employment.
- Supported by evidence that they incurred the cost.
All claims must be made to HMRC.
Claims may be made:
- Online.
- By phone.
- By post.
The taxpayer will need their employer's name and PAYE reference in order to make the claim.
- The HR department will be able to provide these details.
- They appear on the end-of-year PAYE summary form P60 or leaving Form P45.
Online claims
Individuals wishing to claim tax relief for employment expenses will be able to do so using an "Online iForm".
- This is an online interactive page-by-page claim process which incorporates a requirement to add evidence.
Criteria to make online claim:
- The claim is for less than £2,500 in a single tax year.
- The claim is in respect of:
- Working from home allowance (cannot be claimed directly by the employee from 6 April 2026)
- Uniform, work clothing & tools
- Mileage and fuel
- Travel & overnight expenses
- Professional fees and subscriptions
- Plant and equipment
- Other expenses (if wholly, exclusively and necessarily incurred in the performance of your employment).
You will need your Government Gateway login details to make an online claim.
- The approved method of electronic communication is the Personal Tax PAYE digital service.
Postal claims
HMRC only accept postal claims using Form P87.
- Evidence must be provided with the form to prove the individual incurred the cost.
- The evidence requirements will be appropriate to the nature of the expense.
- Employees must also tell HMRC which employment the expense related to, whether their employer reimbursed any of the cost, and if they did, evidence showing how much was reimbursed.
The form can be used to claim:
- On someone else’s behalf.
- For multiple tax years.
- For multiple jobs.
Claims made on form P87 must include:
- All details in section 1 (personal and employment details), except for the individual's phone number and title.
- The employer PAYE reference number in section 2 (found on P60s, P45s or the individual's Personal Tax Account).
- The industry type in section 2 (where the claim includes flat rate expenses).
Forms received by HMRC which do not include these details will be rejected.
Evidence accompanying the Form P87 should be sent to:
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
An employee who nominates a paid tax adviser to receive any payment due from HMRC must sign the hard copy form using an advanced electronic signature, unless HMRC has agreed the employee is digitally excluded upon notification of this to HMRC, by phone, prior to sending the form.
Unable to contact HMRC by post or online?
From 6 April 2025, an employee may only notify HMRC of deductible expenses by phone where the notification relates to:
- Fixed or flat rate expenses.
- Withdrawing expenses when they are no longer eligible or changing their existing expenses to a lower amount in relation to the current tax year.
Evidence requirements
HMRC paused processing employee claims from 10 June 2024, a new regime applies from 14 October 2024. See New evidence requirements for employment expenses
- Subscriptions to professional bodies: copies of receipts, or other evidence, showing how much was paid for the amounts claimed.
- Mileage allowance: a copy of a mileage log for each employment, including the reason for the journey and the postcodes for the start and finish points.
- Hotel and Meal expenses (subsistence): copies of receipts showing the date of the stay or meal and the name of the establishment.
- Expenses for working from home: evidence that the claimant is required to work from home, such as a copy of their employment contract. If the position is not clear from the contract, something else making the requirement formal must be provided.
- Uniform, work clothing and tools expenses: evidence is not required where flat rate expenses are agreed but claimants must ensure they are eligible. From 31 October 2024, claimants for these expenses will be able to use the digital claim route.
- Other expenses: a full list of the expenses and the related employment together with copies of receipts, or other evidence, showing the name of the item and proof the claimant paid for it.
Self Assessment
If the taxpayer completes a Self Assessment tax return they need to make the claim in the Employment income section.
- If your total expenses claim for each tax year is more than £2,500, you need to fill in a Self Assessment tax return
Information required when filing an expense claim includes:
- The receipts for the expenses that are being claimed.
- Details of any business mileage undertaken, which could include journey details, miles travelled and Authorised mileage payments received.
- Receipts for any Hotel and Meal expenses incurred.
Useful guides on this topic
Employee expenses
A series of guides that look at the rules covering employee expenses
Authorised mileage rates (own vehicle)
How much can you claim for the costs of business travel? How much can be reimbursed by an employer towards the costs of qualifying business travel?
Subsistence (summary for employees)
Can employees claim tax relief for subsistence? How do you make a claim?
Accommodation: With travel or temporary workplaces
What cash allowances can be provided for business travel? What qualifies as business travel? What tax relief is available for accommodation?
Working from home (employees)
What expenses can employees claim for homeworking? Are the rules the same for the self-employed? How do you make a claim?
Clothing and work wear
Is tax relief available on clothing bought for work? When might clothing costs be disallowed? What needs to be considered?
Exemption for paid and reimbursed expenses
What exemptions apply for paid and reimbursed employee expenses?
Fees and subscriptions: List 3 (professional bodies)
What tax relief on professional membership fees and annual subscriptions? What's the legislation?
External Links
HMRC: Claim tax relief on employment expenses online
HMRC: Claim tax relief on employment expenses by post