HMRC issues £4,000 warning to millions of workers who claim expenses
If it turns out you aren’t eligible to claim, you’re still responsible for any claims made on your behalf.
HMRC has issued a £4,000 warning to anyone who claims expenses at work. HMRC, which now operates under the Labour Party government, has warned workers "not to get caught out" by online adverts and tax refund companies who offer to make work expense claims for you so they can claim a commission.
HMRC explained: "If it turns out you aren’t eligible to claim, you’re still responsible for any claims made on your behalf. We’ll help you understand how to check if you’re eligible to claim, what you can and can’t claim for, and how to claim with HMRC directly. If you’re eligible, you’ll keep 100% of any money that you’re owed. "
You can check if you’re eligible to claim a tax refund for things like work uniform, tools and travel expenses on GOV.UK. It doesn’t take long to check and could save you a lot of time and money later on – so always check your eligibility before you make a claim.
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Even if you use a tax refund company or agent, make sure your claims are valid, as you’ll have to repay any incorrect claims to HMRC later. For most expense claims, apart from ‘uniform, work clothing and tools’ expenses, you will need to provide supporting evidence to show you are eligible.
Adding an example, HMRC told the tale of Mike, who is a healthcare worker. A colleague suggests they use a uniform expense refund company to claim some money back from HMRC, the government tax arm and tax department said.
On the company’s website, he uses a refund calculator that indicates he can claim £4,000 back from HMRC in work-related expenses. The company later takes £1,600 of fees from the £4,000 refund paid by HMRC. Although surprised by the sizable fee, Mike’s still pleased about the extra cash.
A year later, HMRC informs him he wasn’t eligible for the expenses claimed on his behalf – and that he must pay back the full £4,000, plus interest. HMRC explained: "If you’ve used a tax refund company and think they might have made an ineligible tax refund on your behalf, get in touch so we can help. We will offer extra support to customers who need it.
"To correct a tax refund claim, please contact us through the Income Tax: general enquiries page on GOV.UK."