HM Revenue and Customs has issued a reminder urging workers to check if they are eligible for tax relief on work expenses. Tax relief can be claimed for work expenses including working from home, uniforms, work clothing, tools, vehicles used for work, professional fees and subscriptions, travel, subsistence, overnight expenses, and buying other equipment. You cannot claim tax relief if your employer reimburses all expenses or provides an alternative, such as a different model of equipment. The amount of tax relief cannot exceed the amount of tax paid in the year claimed. You cannot claim tax relief for commuting to your normal workplace or for lunch costs when travelling to your normal workplace.
HMRC has issued a warning about tax avoidance schemes, cautioning that those involved could face 100% of the tax owed plus interest and penalties. Tax avoidance schemes often target contractors, freelancers, and agency workers paid through umbrella companies. Warning signs of tax avoidance schemes include receiving more money than shown on a payslip, being paid via untaxed 'loans' or 'capital advances', and having complex or unclear pay arrangements. Individuals are responsible for their tax obligations even if misled by a scheme promoter.
Money Saving Expert has warned that millions of people need to update their tax details with HMRC as tax codes can be wrong. If your tax code is wrong, you could be due a refund of thousands of pounds. The standard tax-free allowance is £12,570 per year.
From April 6, 2026, HMRC will automatically remove certain reliefs from PAYE tax codes if they are deemed no longer accurate or relevant, including employment expenses over £120 and higher-rate Gift Aid relief. HMRC has issued a 'check it' alert urging taxpayers to verify their tax codes using the HMRC app to avoid overpaying or underpaying tax.
HMRC has clarified that payments for tax payment plans may not show as taken immediately and could be processed later in the day.