PAYE employees can claim tax relief on work expenses their employer has not paid — worth up to 45% of the cost for additional rate taxpayers. Most employees never claim, leaving real money on the table. Here is what you can claim and how to do it in 2026/27.
What Expenses PAYE Employees Can Claim
To qualify, an expense must be incurred “wholly, exclusively, and necessarily in the performance of the duties of employment.” This is a strict test — commuting costs and general clothing are not allowed, but many work-specific costs are.
| Expense | Claimable? | Notes |
|---|---|---|
| Business mileage (own car) | Yes | Claim shortfall below AMAP rate |
| Professional subscriptions | Yes | Must be on HMRC approved list |
| Uniform/specialist clothing maintenance | Yes | Washing/repair only — not purchase of ordinary clothing |
| Working from home (employer required) | Yes | £6/week flat rate or actual extra costs |
| Tools and equipment | Yes | If required for job and not reimbursed |
| Overnight accommodation (business travel) | Yes | Actual cost, not personal preference |
| Training courses | Rarely | Only if directly required for current job |
| Commuting costs | No | Travel from home to permanent workplace never qualifies |
| General clothing | No | Ordinary clothes worn for work do not qualify |
Key Rates and Limits for 2026/27
| Rate/Amount | |
|---|---|
| AMAP rate (first 10,000 miles) | 45p per mile |
| AMAP rate (above 10,000 miles) | 25p per mile |
| Motorcycle mileage rate | 24p per mile |
| Bicycle rate | 20p per mile |
| WFH flat rate | £6 per week (£312 per year) |
| Basic rate relief on expenses | 20% of qualifying expense |
| Higher rate relief | 40% |
| Additional rate relief | 45% |
Mileage Claims: The Most Common PAYE Expense
If you use your own car for business travel (not commuting), you can claim at the HMRC Approved Mileage Allowance Payment rate. If your employer pays less, you claim the shortfall.
Example: James drives 8,000 business miles in his own car. His employer pays 30p per mile.
- AMAP rate: 45p per mile × 8,000 = £3,600
- Employer pays: 30p × 8,000 = £2,400
- Shortfall: £1,200
- Tax relief at 20%: £240 refund (basic rate taxpayer)
- Tax relief at 40%: £480 refund (higher rate taxpayer)
Business mileage means travel to temporary workplaces, client sites, or other locations not your normal place of work. Travel between home and your regular workplace is commuting and cannot be claimed.
Working From Home: Who Qualifies
You can claim the WFH flat rate if:
- Your employer requires you to work from home (not just allows it)
- You are not reimbursed by your employer
You cannot claim simply because you choose to work from home or because it is more convenient. If your employer has a contractual requirement for home working and you have not been reimbursed, you qualify.
Relief for a basic rate taxpayer: £312 × 20% = £62.40/year
Relief for a higher rate taxpayer: £312 × 40% = £124.80/year
For employees with higher actual extra costs (dedicated home office, additional heating, work-only broadband), you can claim actual additional costs instead — but must be able to evidence them.
Professional Subscriptions
HMRC maintains an approved list of professional bodies whose subscriptions qualify for relief. You can find the full list at gov.uk/guidance/professional-organisations-with-fees-approved-for-tax-relief.
Example: Sarah is a nurse and pays £120/year to the Nursing and Midwifery Council (NMC) and £160/year to the Royal College of Nursing (RCN). Both are HMRC approved.
- Total subscriptions: £280
- Tax relief at 20%: £56
- Tax relief at 40%: £112
How to Claim
Option 1: P87 Form (no Self Assessment needed)
For most PAYE employees with expenses under £2,500, use the P87 form:
- Log in to your HMRC Personal Tax Account at gov.uk
- Select “Claim a tax refund”
- Complete the P87 for employment expenses
- Submit — HMRC usually processes within 8–12 weeks
For paper claims, download form P87 from gov.uk and post to: Pay As You Earn, HM Revenue and Customs, BX9 1AS
Option 2: Self Assessment return
If you already file a Self Assessment return, include employment expenses in the employment pages (boxes 17–20 on SA102).
Option 3: Adjust your tax code
For ongoing regular expenses (e.g. annual professional subscription), HMRC can adjust your tax code so relief is given month by month rather than as a lump sum refund.
How Far Back Can You Claim?
You can claim employment expense relief for the current tax year and the previous four tax years. In April 2026, you can therefore claim for:
- 2026/27 (current)
- 2025/26
- 2024/25
- 2023/24
- 2022/23
Claims beyond four years are out of time. File earlier years’ claims now if you have not already.
See our working from home tax relief guide, HMRC mileage rates guide, and Self Assessment guide.