Many people are concerned about ensuring they pay enough taxes, and will often seek out tax accountants and experts to ensure they are paying their fair contribution.
However, whilst underpayments are more outwardly worrying, the biggest concern is the opposite; people are often paying too much tax.
In some cases, such as payments on account not factoring in a change in circumstances or a change in tax code, overpayments are automatically refunded or paid towards your next year’s tax payments.
However, there are several allowances and payments you are entitled to that you may not receive unless you actively seek them out.
Here are some common tax allowances you may be missing out on.
Working From Home
If you have made your home your office, you can claim a rebate based on the extra heating, electricity, telephone and space costs that working from home causes.
The way you claim this differs depending on your financial situation. Work from home employees whose tax is handled on a PAYE system can claim £6 per week without extra evidence of outgoings, whilst self-employed people claim through self-assessment, working out the costs separately.
If you travel to events or a temporary workplace, you can claim a reimbursement for that travel at a flat rate of 45p per mile for the first 10,000 miles and 25p per mile for every mile after that.
Keep in mind that you cannot claim for standard commutes.
You can also claim for reasonable expenses you may accrue on business trips, such as the cost of:
- public transport,
- tolls and charges on top of mileage allowance,
- accommodation for the duration of your stay,
- food and drink costs,
- the cost of business calls, faxes and photocopying
- parking tickets,
- additional uniform or equipment costs.
In some cases, membership fees and subscriptions to professional bodies approved by HMRC are eligible for tax relief, as long as they are not lifetime subscriptions and you paid for them yourself.