Flat Rate Expenses (FRE) for Tools/Clothing: Who Qualifies and What You Get
Learn how employees can claim tax relief on the costs of maintaining or replacing work tools and protective clothing.
This scheme allows employees to claim tax relief on certain costs related to their job, specifically for maintaining or replacing tools and protective clothing.
Who it's for
This scheme is specifically designed for employees who are required to pay for their own work tools or protective clothing. If your job necessitates that you purchase, maintain, or replace these items out of your own pocket, you may be eligible for relief. This is intended to help offset the personal costs incurred while performing your professional duties.
What you get
When you qualify, you receive tax relief on the costs associated with your work equipment. This relief applies to the money you spend on maintaining your existing tools or replacing them when they are no longer fit for use. It also covers the costs related to your workwear and protective clothing required for your role. By claiming this relief, you are effectively reducing the amount of your income that is subject to tax.
What it costs you
There is no direct fee to submit a claim, but there are requirements regarding your time and documentation. To make a claim, you must complete and submit a P87 form. It is essential that you keep all your receipts and proof of purchase for the tools and clothing you are claiming for. Maintaining these records is a necessary part of the process to ensure your claim can be verified.
The catch to know
One detail that many workers frequently miss is the timeframe for claims. You are not limited to only claiming for the current year; you can actually claim back these expenses for up to 4 years. If you have been paying for your own tools or protective gear for several years and haven't claimed before, you may be able to recover those past costs.
How to apply
- Collect and organize all receipts for your work tools and protective clothing.
- Ensure you have the necessary details to complete a P87 form.
- Submit your completed P87 form to the government body responsible for taxes.
- Use the official portal to manage your submission and check for updates.
https://www.gov.uk/tax-relief-for-employees/uniforms-clothing-tools