A flat rate expense is a set amount of money that an unemployed person can get tax relief, on for work expenses they can incur. The amount allowed is decided on by the tax office. It’s important that you claim for your flat-rate expenses to avoid paying too much tax and receive a tax rebate if your owed one.

Flat rate expense deductions apply to those who work in trades and industries, in which there are common and essential job-related expenses. In some cases, trade unions have agreed with the tax office an amount to cover the annual cost of job-related expenses. In some cases, trade unions have agreed with the tax office an amount to cover the annual cost of job-related expenses typically incurred by employees in a number of trades.

What is it for?

Flat-rate expenses are designed to cover the cost of washing uniforms, protective clothing, and cost of small hand tools in some cases.

What do you need?

The value of each flat rate expense varies between each industry and is a non-negotiable figure. You do not need to provide receipts to claim a flat rate expense

To be eligible to claim flat rate expenses in the last 4-years you must have had to

  • Wear any specialist clothing at work that you had to launder yourself
  • Purchase any specialist clothing yourself for work
  • Purchase any specialist tools or equipment yourself
  • Pay any subscriptions to professional organizations

You must also:

  • Have paid income tax in the year of your claim
  • Not have the flat rate expense already in your tax code

after you claim for these your tax code will then be adjusted to take account of your expenses. If you are making a full tax refund claim for travel expenses or filling a self-assessment claim with us all-expense claims will be covered as part of that service and there is no need to apply separately.

How to make a claim for flat-rate expenses

you can only claim for flat-rate expenses if you are an employee, however. If your employer has already paid you back for your expenses then you will not be able to make a claim

as long as those two conditions are not a problem you can submit a tax refund claim by filling out the P87 form. Once this has been sent and processed by HMRC your tax code will be changed to automatically provide flat-rate expense relief each year –meaning you won’t have to keep making a claim every year. It’s worth noting if your expenses change then that is your responsibility to let HMRC know.