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Maximising Your UK Tax Savings: 8 Lesser-Known Claims to Explore

Back view of workers walking towards a house in uniforms

When it comes to tax claims in the UK, there are many more deductions than most people realise. While many taxpayers are aware of common deductions such as pension contributions and charitable donations, numerous others can be made.

Below you can read more about some of the ones that you may not know about:

Professional fees and subscriptions

If you are required to pay professional fees or subscriptions to a professional body to do your job, you can deduct these expenses from your taxable income.

Uniforms and work clothing

When you are expected to wear a uniform or specialised clothing for work, you may be able to claim the cost of purchasing and maintaining these items on your tax return. This means you can claim tax back for washing workwear if you are required to wear a uniform or specialised clothing for work and you have to wash it yourself. You can pay companies like Laundramagic to help you with getting your workwear clean and ready on a regular basis. The uniform or clothing must be identifiable as being associated with your employer, such as having a company logo or specific design.

Tools and equipment

You can claim tax relief for the cost of tools or equipment if you are required to purchase them to perform your job duties. However, the items must be necessary for your work and not something you would normally use for personal use. Also, keep receipts or invoices for the cost of the tools or equipment as well as the date of purchase. You can claim tax relief for the cost of tools and equipment on your annual tax return. You can include this in the ‘Other expenses’ section of your self-assessment tax return. If you are not required to complete a tax return, you can contact HM Revenue & Customs (HMRC) directly to claim the rebate or you can do it online here.

Home office expenses

If you are working from your home, it is possible to deduct a portion of your household expenses such as heating and electricity from your taxable income. To be eligible for tax relief on home office expenses, you must be required to work from home regularly as part of your job. Also, your employer must not reimburse you for these expenses.

Mileage

In case you use your vehicle for work-related activities, you have the option to claim the mileage allowance from your employer. You can also claim the expenses for fuel and maintenance on your tax return. Before applying, make sure you check with HMRC for the eligibility criteria.

Training courses

Are you taking any courses to improve your skills or knowledge in your job? You can claim the cost of the course as a deduction from your taxable income: remember to keep records of the cost of the training course, including receipts and any related expenses such as travel or accommodation.

Rent a Room scheme

Under the Rent a Room scheme, if you decide to rent out a furnished room in your home, you can benefit from earning up to £7,500 tax-free on an annual basis. This scheme is designed to provide a tax-free incentive to people who rent out a furnished room in their primary residence and it is available to a wide range of individuals, including homeowners and tenants, and can provide a significant financial benefit for those looking to supplement their income.

Marriage Allowance

If you are married or in a civil partnership, and one partner earns less than the personal allowance, the lower earner can transfer up to 10% of their allowance to the higher earner, reducing their tax liability.

The takeaway

As seen above, there are many tax claims available that most people are not aware of. From job hunting expenses to rent a room scheme, it’s important to be aware of all the deductions that you are entitled to, as this can help you reduce your tax liability and keep more of your hard-earned money. 

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