Sarah Bradford explains the tests that need to be met for relief to be available for employment expenses and the process for claiming relief.
The rules that determine whether a deduction can be claimed for employment expenses are notoriously strict and, seemingly, often defy common sense. It is not enough to incur the expense in the course of doing your job, and that alone will not guarantee tax relief for the expense.
General rule
Employment expenses are only deductible if they meet a number of very stringent conditions. A deduction from earnings is only allowed for an amount if the employee is obliged to incur and pay it as the holder of the employment, and the amount is incurred wholly, exclusively and necessarily in the performance of the duties of the employment (ITEPA 2003, s 336).
There are some important points to note here.
The rule for
