UK workers could be missing out on valuable tax relief that may put hundreds of pounds back in their pockets each year.
New research has highlighted that there are two main ways to claim money back from HMRC, but many employees remain unaware of the opportunity.
The first option relates to home working tax relief.
Employees who are required to work from home under strict conditions may be entitled to claim back part of their costs, even if the amount seems relatively modest at first glance.
The second option applies to professional membership fees.
Those who must pay annual fees to organisations in order to carry out their jobs could also qualify for money back, with sums ranging between £50 and £150 depending on the body involved.
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These refunds are not applied automatically and must be claimed directly by workers.
The good news is that the process has been designed to be fairly straightforward once eligibility is confirmed, with an online application system available on the government’s website.
The rules for claiming home working tax relief are very specific.
Employees will only qualify if their employer has no office space available, or if their contract explicitly requires them to work from home permanently. Those with the option to work from home, or who are allowed hybrid arrangements, will not be eligible.This means that the millions of people now splitting their time between home and office after the pandemic will unfortunately be excluded.
Millions of people now splitting their time between home and office after the pandemic will unfortunately be excluded.
| GETTYFor those who do meet the strict criteria, HMRC provides a flat rate of £6 per week to cover additional household expenses.
This totals £312 a year, although the exact benefit to each worker depends on their personal rate of income tax.
The relief is designed to help cover higher bills caused by being at home during the day.
This includes the extra heating, electricity for computers and lighting, and broadband needed to remain connected to work systems.
Basic rate taxpayers save 20 per cent on the £312 allowance, which equals £62.40 per year.
Higher rate taxpayers on 40 per cent see double that saving, with £124.80 put back into their pockets.
Many employees remain unaware of the opportunity to claim money back from HMRC
| GETTYProfessional membership fees are another area where thousands of UK workers could save money each year without realising.
If your role requires you to be a member of a professional body or trade union, then those costs can usually be claimed back from HMRC as tax-deductible expenses.
Lee Murphy, managing director of The Accountancy Partnership, said: "If you have to pay a membership fee to be part of a professional body or trade union in your role, then you can claim this cost back."
"Of course, this varies industry-by-industry, but workers should typically be able to claim back £50-150 each year."
Nurses who pay annual fees to the Nursing and Midwifery Council are a clear example of eligible workers.
Engineers who must be registered with professional organisations to practise are another group able to reclaim part of their costs through the tax system.
However, there is one important caveat that workers must be aware of before applying.
If your employer already covers your membership fees or reimburses you, then you will not be able to claim the relief personally, as the expense has not come out of your own pocket.
Even though £62 or £124 may not seem substantial, it can help cover essentials like groceries, bills, or transport costs at a time when household budgets remain under severe pressure.
The government has also emphasised that the system is designed to be user-friendly.
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| HouseOfCommons/UKParliamentEligible workers can apply directly through the official Gov.uk portal, where they will need to provide details of their working arrangements or membership fees, after which the relief is either added to their tax code or issued as a refund.
Many workers could be surprised to learn they are entitled to money back from HMRC, especially those who have been paying membership fees for years without realising they can be reclaimed.
With millions of households facing increased living costs, every saving helps, and unclaimed reliefs could be quietly costing people money they can ill afford to lose.
Workers are therefore being urged to act sooner rather than later.