HMRC reveal top reasons for fraudulent work expenses

HMRC posted on X: "Don't get caught out by invalid working from home expense claims. Use our free eligibility checker before making any claims, even if you have an agent."
Don't get caught out by invalid working from home expense claims. ❌
Use our free eligibility checker before making any claims, even if you have an agent. ✅
Click the link below to learn more. 👇https://t.co/MJOdMHDOwU pic.twitter.com/36YQhATBSs — HM Revenue & Customs (@HMRCgovuk) May 29, 2025
HMRC says you cannot claim the following
Travel and overnight expenses if travelling or commuting to and from your normal place of work
Lunch costs when you are travelling to your normal workplace - you can only claim expenses for food and drink when travelling to a temporary place of work
Food you bring from home when travelling to a temporary workplace, you can only claim the cost of food you paid for during your time away
Working from home costs when you have an office base but choose not to work there. If your employment contract lets you work from home some or all of the time, for example as part of flexible working arrangements, then you won't be eligible for this relief
Uniform, work clothing and tools that have already been provided by an employer can't be claimed - this includes choosing to purchase 'better quality' alternatives to those provided by your employer
Uniform washing costs when your employer has a laundry facility that you choose not to use, such as by washing your uniform at home instead
Workwear that doesn't include a visible logo, for example, if your employer advises you to wear all black clothing this is not an eligible expense
Union fees, unlike certain professional membership fees, aren't an allowable expense
Any work expenses that are already covered by your employer
Five things to keep in mind before claiming
Have you got evidence to back up your expense claim? From 14 October 2024, we will require customers who want to claim work expenses to provide supporting evidence to prove their eligibility before we progress the claim. Tax relief on expenses won't necessarily lead to a repayment. Some expenses are automatically coded through to the following year – check your tax code is still correct. Expenses must be completely work-related and necessary for you to do your job. You can't claim for any expenses that your employer has already reimbursed. If you had an eligible claim in a previous job but the terms are different in a new job, then you may have incorrect items in your tax code. If you pay tax through 'pay as you earn', you're unlikely to need to claim expenses through Self Assessment.
Recommended reading:
How to make a claim from HMRC
If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service.
HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip.
You can also claim back up to four additional years if you have been overpaying for some time.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Times

29 minutes ago

• Times

High earners face surge in tax investigations

High earners face a surge in tax investigations after HM Revenue & Customs doubled revenues from inquiries into the wealthiest Britons last year. A freedom of information request has revealed that HMRC's wealthy and mid-sized business compliance directorate, which examines the tax affairs of those earning more than £200,000 a year or with assets above £2 million, yielded more than £1.5 billion in 2024, double the amount raised the previous year. The success of the unit has led to a decision to hire an extra 400 specialist compliance officers, who will be added over the next four years. The government hopes the move will bring in at least another £500 million in tax revenues by 2030. Accountants have said the number of investigations into wealthy individuals will inevitably increase.

Telegraph

7 hours ago

• Telegraph

Raising capital gains tax again will backfire, Reeves warned

Another capital gains tax raid in the next Budget would 'backfire' on Rachel Reeves and cost the Treasury money, experts have warned. The Chancellor is under pressure to launch a fresh round of tax hikes after raising the top rate of capital gains by four percentage points last year. However, if capital gains rates rise again, anyone selling assets for a profit may choose to delay crystallising their gains or find ways around the tax, which would lead to a loss of revenue for the Exchequer. Tax advisers have warned that a large proportion of capital gains revenues derive from a small number of taxpayers, meaning a significant increase in the rate could 'distort their behaviour', and reduce tax receipts. HMRC estimates suggest that just 2,000 individuals with gains of £5m or more accounted for 37pc of the capital gains subject to tax in 2022-23. Chris Etherington, of accountancy firm RSM, said: 'Given that a significant amount of annual capital gains derive from such a small tranche of the population, it is far from guaranteed that a significant increase in the rate would translate to a windfall of additional tax receipts. 'The Chancellor will no doubt be mindful of the potential risks presented by a further capital gains tax rate rise and may be wary of tax policy changes that could backfire.' In last year's October Budget, Ms Reeves raised the main rates of capital gains tax from 10pc to 18pc for basic rate taxpayers, and from 20pc to 24pc for higher rate taxpayers. She also stripped back relief offered to those selling companies or shares. In March, the Office for Budget Responsibility, the fiscal watchdog, warned that the decision would leave a £23bn hole in the public purse as investors hold off from crystallising gains. Speculation mounted in the lead-up to the Budget that capital gains would be aligned much more closely with income tax, with rates as high as 39pc being modelled by Treasury officials. Households are bracing for a slew of tax rises after the Office for Budget Responsibility (OBR) halved the country's growth forecast for this year to 1pc. Low growth and high borrowing costs could force Ms Reeves to raise taxes again in what the Institute for Fiscal Studies think tank has warned could be a 'blockbuster Budget'. Capital gains tax receipts fell to £13bn in the year to March 2025, down 10pc from £14.5bn in the same period last year, according to HM Revenue & Customs data. The tax accounts for less than 2pc of all government revenue. Nimesh Shah, of accountancy firm Blick Rothenberg, said: 'Capital gains tax revenue comes from a narrow pool of people, so it doesn't take much for that distortion to make an impact – a small change can make a big difference. 'It's an optional tax. You only pay when you dispose of an asset, so people may simply choose to hold on to things like houses, so as not to crystallise the tax bill – or they may simply leave the UK and crystallise the gains abroad. 'Like all taxes, there's a Laffer Curve point with capital gains tax where revenue starts to fall as rates rise.'

Daily Mirror

13 hours ago

• Daily Mirror

Summer job rules every parent needs to know this summer for their child

MoneyMagpie Editor and financial expert Vicky Parry explores employment law for under-18s considering a summer job Working a summer job is a great way for teenagers to earn some extra cash, gain some work experience, and have some independence. But there are some important laws that parents – and teens – should know about to make sure their employer is sticking to the rules. ‌ How long can an under-18 work each week? Children from the age of 14 can work part-time hours (in some areas, this is lowered to 13 – check your local council's education department). Those under 14 may be able to work in exceptional circumstances, such as if they are a performer in TV, theatre, or as a model, and will need a performance licence. ‌ Children over school leaving age can work full-time up to 40 hours a week. This is the age of 16 in Scotland, Wales, and Northern Ireland. In England, children must be in part-time education or training until the age of 18, so can only work part-time hours. How much can under-18s earn? Young people aged 16 and above may be paid through PAYE systems, and once they turn 18 adult employment rights apply. National Minimum Wage rates apply regardless of a person's age. This means employment must meet the minimum hourly rate for their age bracket. For under-18s, that is £7.55 an hour (rising to £10 an hour when they turn 18). So, if you get a job earning £7.55 an hour for twenty hours a week, that would be a gross pay of £151 a week. This would not be enough to qualify for National Insurance or tax contributions, so £151 would be the take-home in most cases. Over-16s need to pay National Insurance if they earn more than £242 a week. They would pay tax when they earn more than the annual Personal Allowance (currently £12,570). Sometimes, for full-time or highly paid summer jobs, this means they may be taxed at first but can claim a refund when the job ends. Can under-18s be self-employed? Yes! Technically, a company director can be appointed to a Limited Company from the age of 16, however it is advisable they are not the sole director. This is because they are legally responsible for company activities, including filing with Companies House and tax returns. Under-18s also don't have legal capacity to enter into certain contracts such as with suppliers, and will not be able to apply for financial business support or business bank accounts. ‌ Under-18s can operate as sole traders, and will need to register with HMRC for Self Assessment if they will earn more than £1000 (the Trading Allowance). They will need to submit a tax return every year to HMRC, and keep accurate accounting records to do so. They won't pay tax on their income if it is below the Personal Allowance of £12,570 each year, after business expenses. They may be required to pay National Insurance contributions. Safe work environment awareness If a job requires operating heavy machinery or toxic chemicals, the workplace must provide relevant training and supervision. There may be some parts of the job that an under-18 cannot do, such as operating dangerous machinery. They cannot be discriminated against for their age in the work environment. ‌ An employer must provide relevant health and safety training to every employee, regardless of their age. This includes a responsibility to work within reasonable hours. For most employment for under-18s, this means no scheduled work between 10pm – 6am, with some exceptions such as creative work (like being a theatre actor), healthcare, or retail. This only applies if there are no adult workers available to do the work. It is illegal for any under-18 to work between midnight and 4am, regardless of their job or industry type. There must be a 12-hour rest break in any 24-hour period in which they work, and any shift over 4.5 hours must include a half hour break (paid or unpaid). Each week must also include a continuous 48-hr (two-day) rest break. ‌ When working late, an employer has a duty of care to under-18s to ensure they have the supervision of an adult employee where possible and necessary. They shouldn't be left alone unless there is nobody else to do the job. Under-18s working on alcohol licenced premises Local councils set their own rules about under-18s working in pubs, cafes, restaurants and event venues that serve alcohol. Usually, they are permitted to serve alcohol but this may be restricted to only bottled or canned drinks. Make sure teens know HR policies Summer jobs are often the first time young people will come into regular contact with hierarchies and colleagues and customers of all ages. This can mean they are unsure how to handle difficult situations where they feel uncomfortable. ‌ It might be that they feel a colleague or customer is being inappropriate with them. Or, they may not realise that someone is acting inappropriately, such as using a managerial position to pressure them into social engagements outside of work which they don't want to attend. Make sure your teen knows the policies of the company they work for, including grievance policies. You should also ensure they are aware of creating boundaries between work and personal life, and that it is OK to have them. Create a safe space for your teen to talk about work, and pay attention to anything they say which sounds like a senior colleague is being inappropriate or they are put into unsafe situations with customers. Saving summer job cash Under-18s can access savings accounts for children, so if they already have a Junior ISA it's a great idea to encourage them to save some of their summer job earnings into it. If they don't yet have an ISA or savings account, now is the time to talk to them about the importance of creating a financial safety net early on, and to help them find a bank account that suits them. Some parents also choose to use their teen's first earning opportunity as a way to teach them about life skills. Take some time to explain what their payslip means, how National Insurance works, and tax basics. You might also help them learn about budgeting, breaking down their weekly or monthly earnings into savings and spending pots based on their expenses. Some of the brands and websites we mention may be, or may have been, a partner of However, we only ever mention brands we believe in and trust, so it never influences who we prioritise and link to.