What is Uniform Tax Rebate?
Attention to the hard-working tax-payers of the UK. If your job requires you to pay out of pocket for expenses incurred by you solely because of your employment, such as your uniform and the maintenance required behind it, then you may be in luck. The P87 form and its Uniform Tax Rebate is available to you to help refund the costs incurred throughout the work year because of your employment. This simple process can be completed in minutes online or by post.
One’s rebate may change on a case by case basis depending on how much one has earned throughout the year. For instance, with the Uniform Tax Rebate, there is a flat allowance called the FREE (Flat Rate Expense Allowance) that covers all general uniform maintenance, with no additional form or documentation to fill out, with a rebate of £60. So, if you claim this £60 expense on your taxes a basic rate taxpayer would receive £12 back (20% of £60) and a high rate taxpayer would claim £24 (40% of £60) back in their taxes. This can be claimed up to 4 years back, including the current year, meaning a minimum of £48 all the way to £96 depending on the tax bracket. Though this part of the P87 is simple, there is much more one could claim if they wished to maximize their refunds.
Uniform Tax Rebate and FREA
A uniform in the sense of tax purposes includes the typical uniform one sees on a Doctor, Nurse, or other such distinguishable employee but can also include something as simple as a branded T-shirt required by your employer that you must take care of. Make note, that this does not include the initial cost of buying your uniform. Because of this, there are many employees that this refund is available for that do not fully take advantage of these rebates. Also of importance, if you have already registered as a uniformed employee your tax code has been updated and the taxes your paying are reflecting this or if your employer is covering these expenses they cannot be claimed.
The P87 can be claimed in one of two simple ways. The standard form is by post, and the P87 is available online to be filled out and sent into the HRMC. Be sure to fill everything out and to include your employer’s name and address, your occupation, job title, industry, NIN, PAYE reference, the rate at which you’re claiming your taxes, and if you want a bank transfer or check to be paid to you. A relatively new way, and somewhat simpler for the technologically literate, is the online form available on the HRMC’s website. All the same, information is required but may be filed digitally instead of waiting and paying for the post. After you’ve finished your work filing, the HRMC should respond to you in about 5 weeks detailing whether everything has been accepted, when, and for how much you should be expecting in your payment form of choice. Alternatively, you can use third-party companies to chase your rebate from HMRC Tax Rebate Guide specialize uniform tax rebate but do charge you a percentage of your uniform tax rebate cost.
Another thing to be aware of is the multitude of other expenditures that may have been put on you while working from your employer, many of these are also deductible within the P87. For instance, if you’re buying your own equipment to complete your job then that is deducted. If your employment requires registrations or union fees or other subscriptions they can all be included in your deductions on the P87. Jobs that require you to travel overseas, if you need a visa and vaccines all can be added to the list of deductions on the P87 alongside your uniform tax rebate.
Additionally, if your job requires day to day travel in a vehicle you must maintain, the P87 allows claims for mileage on vehicles. The Authorized Mileage Allowance Payments (AMAP) relief provides deductions based on the number of miles required for you to travel based on your employment. To obtain this refund one has to provide details of your business only mileage from the first 10,000 and anything beyond 10,000 miles. Many use a GPS or a phone app to help provide details of their total driven miles to ensure accuracy while filling out their P87.
Those that have claimed expenditures for the same job in the past need not worry about redoing all of this, as your tax code should be adjusted already. If you find yourself in a situation where you think your tax code is not up to do and you’re claiming expenses less than £1,000 you are able to call the HMRC’s hotline at 0300 200 3300 8 AM – 8 PM Monday through Friday and at 8 AM to 4 PM on Saturdays. After this call the HMRC will send you a P810 Tax Review form, which is the form required to change tax codes, more forms will be required for expenses over £1,000.
Be sure to be meticulous while filling out your P87 as any expenditures that do not seem to fit the bill of the P87 will incur fees and interest based on the total cost of the invalid claim. Keep track of all costs put on to you by your employer to ensure your tax code fully represents the amount of work, time, and money you put into your career. The Uniform Tax Rebate and the AMAP are among the most popular to be claimed but don’t forget all your subscriptions, vaccines, visas, unions, equipment, or tools as it is your right to claim these back on your taxes. Ensure fairness from your government and employer through the use of these forms and the knowledge to do so.