Book-keepers Question: I have a client who is self-employed but also works as a nurse in a NHS hospital. Their professional organisation has told them that they could claim tax refunds for the last 6 years, for the cost of the particular shoes and socks they need to wear for work. Is there a limit on what they can claim?
BKN Answer: There are set limits for such costs, known as flat rate expenses, which vary according to the taxpayer's profession and work description. The full list of tax claimable flat rate expenses can be found here: http://www.hmrc.gov.uk/manuals/eimanual/EIM32712.htm.
In your clients case, 'Nurses' can claim £ 100 per year as a flat rate expense against their taxable income for uniforms without any receipts but in addition they can also claim £ 12 per year for the cost of shoes and £ 6 per year for stockings or tights. The £ 100 figure was £ 70 per year from 2004/05 to 2007/08. However, your client will need to make their claim quickly, as the deadline for claims relating to 2005/06 is 31 January 2012. The deadline for 2006/07 is 31 March 2012, and for 2007/08 it's 5 April 2012.
However those deadlines only apply if your client was taxed under PAYE, and did not submit a self-assessment tax return for those tax years. If they did submit a self-assessment tax return for the year the claim relates to, their claims period is already limited to 4 years from the end of that tax year. In that case the earliest year they can claim for is 2007/08, and their claim must be received by HMRC by 5 April 2012.
