SA - Unreceipted/Professional Expenses

[T5R+]

Seem to recall that the HMRC will allow you to claim (some) expenses without proof of receipts in relation to your profession eg tools for tradesmen, subscriptions for Charterdom, etc

Could someone please help me undestand this better i.e limit without receipts and what are classified as allowable - sure there will be an official form somewhere but it is a myriad of officialdom.

In readiness for next year - if I want to claim the difference between that which my employer pays as business milaege (14p) and the official (43p) rate - is there a special form?
(About to opt of of car scheme, which would equate to me running a private vehicle).

[Eric Mc]

Motoring Costs query first - there is no official form. If you are submitting a Self Assessment tax return, enter the motoring claim in the "Expenses in Employment" section of the form.

Regarding other expense claims, the first thing to remember is that employees can only claim expenses incurred "wholly, exclusively and NECESSARILLY" in the course of their employment. This is a tougher test than expense claims for Sole Traders/Self Employed individuals.

If the claim is allowable i.e. it satisfies the above requirements, there is no requirement that an original receipt has to exist. All the tax man will want is EVIDENCE that the expense was incurred. This evidence CAN be a receipt or voucher - but it could also be an entry on a bank statement or a credit card statement or details entered on a cheque stubb.

[944gav]

T5R+ said:

In readiness for next year - if I want to claim the difference between that which my employer pays as business milaege (14p) and the official (43p) rate - is there a special form?
(About to opt of of car scheme, which would equate to me running a private vehicle).

If you do not complete Self Assessment Returns, the form you would need is a P87. The HMRC rate is 40p/mile for the first 10,000 miles, then 25p/mile thereafter. On the form, you enter your business mileage calculated at the above rates then subtract the mileage rate paid by your employer to arrive at the allowable expense.

Regarding the unreceipted expenses, have a look at EIM32712 on the HMRC website, which gives you a list of the Flat Rate Expenses available under s367 ITEPA 2003. Normally your tax office will add this expense to your code to effectively increase your allowances.

[T5R+]

Thank You