Sarah Bradford outlines when employees may be able to claim tax relief for expenses.
The rules governing the deductibility of employment expenses are notoriously strict. However, that does not mean employees who incur expenses in relation to their job cannot obtain relief; it is a question of understanding when relief is available and, if it is, how the relief can be claimed.
The rules governing deductions from earnings are found in ITEPA 2003, Pt. 5.
The general rule
The general rule governing deductions for expenses (ITEPA 2003, s 336) provides that a deduction is allowed from earnings for an expense if the employee is obliged to incur and pay it as a holder of the employment, and the amount is incurred wholly, exclusively and necessarily in the performance of the duties of the employment.
This test can be contrasted with the business
