The Association of Taxation Technicians (ATT) has welcomed the announcement at today’s Budget that HMRC plan to work with interested parties to improve the guidance on employee expenses, and the process for claiming tax relief on non-reimbursed employment expenses.
The ATT responded1 to the Treasury’s call for evidence2 on the taxation of employee business expenses in July, and called for the Treasury to focus on ensuring that employees can more easily claim the tax relief due to them on unreimbursed expenses.3
Where employees incur allowable expenses in the course of their employment such as business mileage or subscriptions, these are not always reimbursed by employers. In this case employees can seek tax relief from HMRC on the costs which they have incurred.
Yvette Nunn, Co-chair of ATT’s Technical Steering Group, said:
“Having made a call for improvements, we are pleased to see HMRC respond to this in today’s Budget. We look forward to working with HMRC to ensure that employees have easy access to clear and appropriate official guidance in respect of tax deductible expenses in general, and that the claim process is as easy to use as possible.
“Individual’s Personal Tax Accounts4 could be a useful and straightforward way for employees to get the relief that they are entitled to.
“We also called for the Government to look at the issue where lower paid employees are not reimbursed their business expenses. Our concern is that they then receive less than National Minimum/Living Wage and this is an area that still needs attention.”
Notes for editors
- The ATT’s submission to the Treasury can be found here.
- The call for evidence can be viewed here.
- The ATT’s press release calling for better guidance can be found here.
- The Personal Tax Account system is an online portal allowing individuals to manage their tax affairs by pulling the personal information together in one place. More information can be found here.