Employees who need to buy substantial equipment to use as part of their employment may be able to claim tax relief. In most cases they can claim relief based on the full cost as it usually qualifies for a type of capital allowance called the Annual Investment Allowance. Any tax relief would be reduced if the employer provides a contribution towards buying the item.
The way to claim tax relief depends on the amount you are claiming for. HMRC provides the following information on making a claim:
Claims up to £2,500
You should make your claim:
- using a Self-Assessment tax return if you already fill one in
- online or by printing and posting form P87 if you don’t already fill in a tax return
- by phone if you’ve had a successful claim in a previous year and your expenses are less than £1,000 (or £2,500 for professional fees and subscriptions)
Claims over £2,500
- You can only claim using a Self-Assessment tax return. You need to register if you don’t already complete a return.
There are different rules for employees claiming for their own uniforms, work clothing and tools for work.