Tax Relief for Job Expenses

lj20

Hello, I'm after a bit of advice about tax relief on expenses as I've never had to do anything like this before.

I'm a 20% tax rate payer and I am paid via PAYE. Over the last couple of years in order to do my job I have had to buy approx £3000 worth of equipment and I have been informed that I can claim tax relief on this as I can't recover these costs from my employer.

I believe the P87 can be used on claims up to £2500 and anything above must be self assessment. But my question is, is this limit the amount I have spent or the amount I'm looking to claim back?

I called HMRC and was simply told that anything over £2500 should be done via self assessment but what he couldn't seem to explain to me is what the £2500 should be... the amount I expect to receive back (Approx £600) or the amount of which I have spent £3000)?

Sorry if this is a silly question, only ever been paid through PAYE so never had to deal with the minefield that is tax.

Many thanks

Dazed_and_confused

According to the form on gov.uk it is the amount of the expense not the tax relief.

Only fill in this form if your allowable expenses are less than £2,500 for the year

But it also seems to be per tax year, have you spent more than £2,500 in a single tax year?

lj20

Hi and thank you very much for your help.

In the 16/17 year I spent £2965 and in the 17/18 year I've spent £77 so I'm presuming I'll have to do self assessment. This will be a learning curve!!!

TheCyclingProgrammer

What equipment was it? Was it wholly, exclusively and necessarily for the purposes of doing your job or something optional that you chose to buy to make your job easier? It has to meet the former rule generally, to be allowable.

00ec25

as your employer has refused to pay for it, and as asked above, what makes you think the costs are claimable at all?

what did you buy, and does its purchase meet the necessarily incurred ...
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31645
...in the performance of the duties of your employment tests?
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31650

(PS the phrase "wholly and exclusively" does not apply in this context)

was it a computer perhaps? see here:
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim36730