In our latest blog post, we highlight an important reminder from HM Revenue and Customs (HMRC) for employed workers regarding tax refunds on work-related expenses. HMRC is urging taxpayers to claim their refunds directly through the official GOV.UK portal to ensure they receive the full amount owed to them.
During the 2021 to 2022 tax year, over 800,000 taxpayers claimed tax refunds for work expenses. Surprisingly, more than 70% of claimants missed out on their full entitlement because they used an agent to handle their claims instead of claiming directly with HMRC.
Claiming your tax refund directly through HMRC's online portal on GOV.UK is a quick and straightforward process. By doing so, you guarantee receiving 100% of the repayment without any hidden terms or intermediaries taking a portion of the refund.
Victoria Atkins, Financial Secretary to The Treasury, emphasized that no one should miss out on their full claim and encouraged individuals to go straight to HMRC to avoid potential losses due to unscrupulous repayments agents.
Thanks to the Spring Budget reforms, individuals who no longer wish to involve an agent in their claim can cancel the agent's services. This ensures that any future rebates go directly to the taxpayer in their entirety.
Jonathan Athow, HMRC's Director General for Customer Strategy and Tax Design, emphasized the importance of individuals receiving their hard-earned cash promptly. He advised individuals to make their claim by searching 'employee tax relief' on GOV.UK, as it is the fastest way to secure a tax refund for work-related expenses and ensures the full amount is returned.
Submitting a claim through HMRC's online portal is a simple process that takes approximately 15 minutes. The portal provides a convenient online tool to check eligibility and lists various work expenses that can be claimed, including uniforms and work clothing, work-related equipment purchases, professional fees, union memberships, subscriptions, and work travel expenses (excluding the journey from home to work).
For customers who already have a Government Gateway account, step-by-step guidance is available to submit their claim. Those who need to set up an account can do so quickly and easily on GOV.UK.
While some individuals may consider using a repayment agent, it is crucial to be aware that agents charge for their services, often up to 50% of the claim's value. Additionally, customers will need to provide the same information to the agent that they could easily use to make the claim themselves through HMRC's free online portal.
Understanding the terms and conditions is essential before signing a contract with a repayment agent. Customers should thoroughly research the company and carefully review the small print to comprehend the commission being charged and the portion of their tax refund they are likely to receive.
For more information on how to make a work-related expense claim and the types of expenses eligible for refunds, visit GOV.UK. Take control of your tax refunds and ensure you receive the maximum entitlement by claiming directly with HMRC.