In just a few months time, the amount of tax that people pay will change for millions of households across the country.
It comes after changes made by the Scottish Government will see those on the highest salaries will pay more from April, when the new tax year begins. The people set to pay the higher level are those earning over £160,000 who will take home over £2,500 less per year.
However if you wear a uniform, Money Saving Expert (MSE) have reminded people that they could claim a discount.
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So if you are one of these people and are keen to see more cash in your bank, here's what you need to know, according to MSE.
Who is eligible for a uniform tax rebate?
Whether it's a shirt or a full uniform, if you have to wash, repair or replace it yourself, you may be able to reclaim £100s of tax for up to five years of expenses.
To be able to claim tax relief for washing your work clothing, all of the following must apply:
- You wear a recognisable uniform that shows you've got a certain job, such as a branded T-shirt, nurse or police uniform. HMRC says a simple test would be if you were out and about and wearing your work uniform, a member of the public would recognise your employer because of logos or a company name from your uniform
- Your employer requires you to wear it while you're working. This means you have no other option but to buy it. You can still claim the whole year's relief even if you only had to wear the uniform for just one day within the tax year
- You have to purchase, clean, repair or replace it yourself. However, you can't claim if your employer washes your kit, provides facilities to do so (even if you don't use them) or pays you for doing this maintenance
- You paid income tax in the year you are claiming for. Since this is a perk to reduce your tax liability, you can't claim if you paid no tax in the year you're claiming for.
People in the armed force should not need to claim as the cost should be accounted for via their tax code, with their tax-free personal allowance raised to compensate. And if you're self-employed, claim uniform and laundry expenses when filling in your self-assessment tax return instead.
How much is the rebate?
MSE explain: "The standard flat-rate expense allowance for uniform maintenance is £60. By claiming a uniform tax refund, you'll get back the amount of tax you would otherwise have paid on that £60. So if you're a basic-rate taxpayer, you'll get 20 per cent of £60 as a rebate – which is £12. Higher-rate taxpayers will get back £24.
"Since the £60 is a flat rate, you don't need to record and report the individual amounts you actually spend.
"In addition to the current year's allowance, you can backdate your claim by up to four tax years too (currently 2018/19, 2019/20, 2020/21, and 2021/2022) – so five years in total."
If you were a basic-rate taxpayer who wore a uniform in each of those tax years, you could claim:
- 2022/23 – £12
- 2021/22 – £12
- 2020/21 – £12
- 2019/20 – £12
- 2018/19 – £12
Depending on your job, you may be entitled to more. You can check the full list of occupations to see if yours is listed.
How will I get the discount paid to me?
You may see a change to your tax code for the current tax year which means may be taxed less and see a slight raise in how much you take home.
They warn it can take a few days for this to change but your employer will have to ensure they make the cut off date in time for its payroll meaning those closer they apply to the day you get paid, it is likely you will see the change in the following month's pay slip.
If your claim is for previous tax years, HMRC can either make adjustments through your tax code or give you a tax refund. Once your claim has been processed by HMRC, you'll get a letter telling you how much you're entitled to, and details on when the money will be paid.
How do I make a uniform rebate claim?
There are two options. If you have never claimed before, you will need to fill out this form found on the GOV.uk website.
However if your claim is for the current tax year, MSE say that once you've registered, your tax code will change and you should see a change through your tax code or through a tax refund.
MSE warn that you can do this yourself for free warning people that they don't need to pay for someone to do it on their behalf.
If you are claiming for the first time, you can fill out the form either online of by post. If you do the latter, it can be sent to the following address:
Pay As You Earn, HM Revenue & Customs, BX9 1AS
You should write 'Repayment Claim' on the envelope to speed things up. If applying by post, you'll need to fill in one form for each year you're claiming for.
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