Written by Oroni Chowdhury · Last reviewed: November 2026 · Applies to the 2026/27 tax year
Plenty of employees pay work costs out of their own pocket: the professional subscription, the mileage the company only part-covers, the boots the uniform policy does not include. Few realise HMRC will give some of that back, and fewer know how the rules changed after 2024.
This guide to tax relief for employment expenses explains what you can claim in 2026/27, which claim route fits your situation, what evidence HMRC now expects, how much the relief is worth and how to claim it on a Self Assessment return.
- You must have paid yourself, for something your job needs, used only for work.
- Costs your employer repays in full cannot be claimed.
- The approved mileage rate rose to 55p a mile from 6 April 2026.
- Working from home relief can no longer be claimed from HMRC for 2026/27.
- Claims over £2,500 a year, or by anyone filing a return, go through Self Assessment.
- HMRC now asks for evidence for most claims.
What Is Tax Relief for Employment Expenses?
Tax relief for employment expenses is a reduction in your taxable pay for costs you meet personally in order to do your job. It does not refund the whole cost: it removes the tax you paid on that amount (claim tax relief for your job expenses).
Three conditions apply to almost every claim:
- You paid with your own money.
- The cost was for something you must have to do your job, not just something that makes it easier.
- You used it only for work, and your employer has not repaid you. If they repaid part, you can claim the rest.
The “wholly, exclusively and necessarily” test
For general expenses, the law asks whether the cost was incurred wholly, exclusively and necessarily in doing your job. In practice that is a strict test. Every holder of the job would need the item, not just you, and there can be no personal element. A suit for client meetings fails; protective boots the role requires usually pass.
What Can Employees Claim?
| Category | Usually claimable | Not claimable | Evidence |
|---|---|---|---|
| Business travel and overnight stays | Trips to temporary workplaces, hotels and meals while away | Normal commuting | Receipts and journey details |
| Using your own vehicle | The gap between the approved mileage rate and what your employer pays | Commuting miles | A mileage log with postcodes |
| Uniforms, work clothing and tools | Cleaning, repairing or replacing them, often at a flat rate | Everyday clothes, even if worn only at work | None for flat-rate claims |
| Professional fees and subscriptions | Approved bodies you must belong to, or that relate to your work | Bodies not on HMRC’s list | Proof of payment |
| Other equipment | Items your job requires, used only for work | Items with personal use | Receipts |
| Working from home | Past years only, if you were required to work from home | 2026/27 onwards | Proof of the requirement |
What you cannot claim
Travel between home and your normal workplace, ordinary clothing, childcare, the cost of qualifying for a job in the first place and anything your employer has already repaid are all outside the relief. Fines and personal phone contracts are also excluded.
Mileage, Travel and Overnight Costs
Mileage is often the largest part of tax relief for employment expenses. If you use your own car or van for business journeys, your employer can pay you up to the approved mileage rate tax-free. From 6 April 2026 that rate rose from 45p to 55p a mile for the first 10,000 business miles, and stays at 25p a mile after that (increase to approved mileage rates).
If your employer pays less than the approved rate, or nothing at all, you can claim mileage allowance relief on the difference (vehicles you use for work). The higher 2026/27 rate means more employees now have a gap to claim.
Jake drives 6,000 business miles in 2026/27. His employer pays 30p a mile.
- Approved amount: 6,000 × 55p = £3,300.
- Paid by his employer: 6,000 × 30p = £1,800.
- Mileage allowance relief: £1,500.
- Tax saved: £300 as a basic-rate taxpayer, or £600 at the higher rate.
Motorcycles, bicycles and passengers
Separate, lower approved rates apply to business journeys by motorcycle or bicycle, and your employer can pay a small tax-free amount per mile for each colleague you carry on a business trip. Passenger payments do not create a relief claim if your employer pays nothing, so check the current rates on GOV.UK before claiming.
Business travel also covers fares, parking, hotels and reasonable meals when you travel to a temporary workplace. A workplace generally stops being temporary once you expect to work there for more than 24 months. Travel between home and your permanent workplace is commuting and never qualifies (travel and overnight expenses).
Meals and hotels: what counts as reasonable
When a business trip keeps you away overnight, the cost of the hotel and reasonable meals forms part of your tax relief for employment expenses. HMRC does not set a cap for employees claiming their own costs, but the amount must be what the trip genuinely required. Keep itemised receipts, and leave out personal extras such as bar bills or a partner’s room.
Uniforms, Tools and Professional Fees
If you wear a uniform or protective clothing and wash, repair or replace it yourself, you can claim. Many industries have an agreed flat rate, and the standard amount is £60 a year if no flat rate applies, with no receipts needed (uniforms, work clothing and tools). Our guide to the tax rebate for washing work clothes covers this in detail, and Eternity Accountants explains the full uniform tax rebate rules.
Professional fees and subscriptions qualify when the body is on HMRC’s approved list, known as List 3, and membership relates to your job (approved professional bodies). You cannot claim life membership or a body that is not on the list (professional fees and subscriptions).
Priya, a nurse, pays £280 a year to an approved professional body that her job requires. Her tax saving is £56 at the basic rate, £112 at the higher rate or £126 at the additional rate.
Equipment can also qualify for tax relief for employment expenses. Specialist tools, or a laptop your employer insists you buy, are claimable if used only for work. If there is any personal use, the claim usually fails.
Working From Home: What Changed in April 2026
From 6 April 2026, employees can no longer claim tax relief from HMRC for extra costs of working from home (removal of homeworking relief). Employers can still pay up to £6 a week tax-free, and you may still be able to claim for earlier years if you were required, not just allowed, to work from home.
How to Claim Tax Relief for Employment Expenses
The right route depends on how much you are claiming, how many jobs you have and whether you already file a tax return (claim online or by P87).
| Your situation | How to claim |
|---|---|
| Total expenses under £2,500 and you do not file a return | HMRC’s online claim service |
| Claiming for someone else, several jobs or several years on one form | Form P87 by post |
| A paid agent will receive the refund for you | Form P87 with an advanced electronic signature |
| Flat-rate uniform claim, or reducing or withdrawing a current claim | Phone may be possible |
| Total expenses over £2,500, or you already file a return | Your Self Assessment tax return |
Phone claims were narrowed from April 2025, so most claims now need the online service or a P87 (claims by post or phone).
Whichever route you use, tax relief for employment expenses is claimed per tax year and per job. Have your employer’s PAYE reference ready; it appears on your payslip, P60 or P45.
Evidence HMRC asks for
- Professional fees: receipts or other proof of payment
- Mileage: a log for each job showing dates, journey purpose and start and finish postcodes, plus what your employer paid
- Hotels and meals: receipts showing the date and place
- Other items: a list of what you bought, the job it relates to and receipts
- Flat-rate uniform claims: no receipts, but you must be eligible
How you receive the relief
For the current tax year, HMRC usually changes your tax code so you pay a little less tax each payday. For earlier years, it may adjust your code or send a refund. Either way, the relief can never be more than the tax you actually paid. Check your code afterwards in the HMRC app; our guide on finding and reading your tax code shows where to look.
Agency and umbrella workers
If you work through an agency or umbrella company and are under the supervision, direction or control of the client, your travel between home and each assignment is usually treated as ordinary commuting. That rule blocks many travel claims that agency workers are told they can make, so check your contract terms before claiming.
What happens after you claim
HMRC checks the claim and may ask for more evidence. If it accepts the claim for the current year, a new tax code usually follows within a few weeks. For earlier years, any refund is normally paid to your bank account or by cheque. Keep a copy of everything you send, as HMRC can review claims later.
Claiming Tax Relief for Employment Expenses on Your Tax Return
If you already file a Self Assessment return, you must claim tax relief for employment expenses there rather than online. The claim goes on the employment pages (SA102) for the job concerned (SA102 notes).
| SA102 box | What goes in it |
|---|---|
| Box 17 | Business travel and subsistence, including mileage allowance relief |
| Box 18 | Fixed deductions, such as flat-rate uniform expenses |
| Box 19 | Professional fees and subscriptions |
| Box 20 | Other expenses and capital allowances |
Claiming on the return replaces any tax code adjustment for the same costs, so do not claim the same expense twice. Keep your evidence, as HMRC can check the return later. See our guide to Self Assessment deadlines for when the return is due.
Backdating and What Your Claim Is Worth
The value of tax relief for employment expenses is your spending multiplied by your highest rate of Income Tax on employment income. The table shows the value of £100 of qualifying expenses.
| Your tax rate | Value of £100 of expenses |
|---|---|
| Basic rate (20%) | £20 |
| Higher rate (40%) | £40 |
| Additional rate (45%) | £45 |
Scottish taxpayers use Scottish rates, from 19% to 48%, so the value is slightly different.
You can usually claim for the current tax year and the previous 4 years. A nurse who has never claimed the £60 flat-rate uniform allowance could claim 5 years at once: £300 of expenses, worth £60 to a basic-rate taxpayer.
If you have more than one job
Each job is treated separately. Expenses for one job can only be set against the pay from that job, so a second job with low pay may limit how much relief you receive. On a tax return, use a separate SA102 for each employment and put the expenses on the page for the job they relate to.
Using a Tax Refund Company
Tax refund companies advertise heavily for job expense claims. You can make every claim in this guide yourself, free. If you do use a company, check its percentage fee, read whether the refund will be paid to it rather than to you, and remember that the claim is made in your name. If a paid agent is nominated to receive your refund, HMRC requires the P87 to carry an advanced electronic signature.
Mistakes to Avoid
| Mistake | What happens | How to avoid it |
|---|---|---|
| Claiming commuting costs | The claim is rejected | Only claim business journeys |
| Claiming costs your employer repaid | Overclaimed relief must be repaid | Deduct any reimbursement first |
| Claiming working from home for 2026/27 | Not allowed | Check past years only |
| No mileage log | HMRC asks for evidence you cannot give | Log every business trip |
| Claiming online and on your tax return | The same cost counted twice | Use one route only |
Tax Relief for Employment Expenses: FAQs
Can I claim without receipts?
Only for flat-rate uniform and tools claims. Most other claims now need evidence, such as receipts or a mileage log.
How far back can I claim?
You can usually claim for the current tax year and the previous 4 tax years.
Can I claim working from home in 2026/27?
No. Relief for employees ended on 6 April 2026. Your employer can still pay up to £6 a week tax-free, and earlier years may still be claimable.
What if my employer pays less than 55p a mile?
You can claim mileage allowance relief on the difference between 55p and what you were paid, for the first 10,000 business miles.
Do I need to fill in a tax return?
Only if your expenses are over £2,500 in a year or you already file one. Otherwise you can claim online.
Should I use a tax refund company?
You can claim yourself for free. If you use a company, check its fee and whether the refund will be paid to it first.
Will my tax code change?
For the current year, usually yes. HMRC adjusts your code so you pay less tax through payroll.
Can I claim professional subscriptions?
Yes, if the body is on HMRC’s approved list and membership relates to your job.
Final Verdict: Claiming What You Are Owed
Tax relief for employment expenses rarely makes anyone rich, but it adds up, especially with the 55p mileage rate from 2026/27 and the ability to go back 4 years. Check the three conditions, keep evidence, pick the right claim route and, if you file a return, use the correct SA102 boxes.
- List what you paid for work this year and what your employer repaid.
- Gather receipts, mileage logs and membership details.
- Claim online, by P87 or on your tax return, depending on the table above.