Whether you work for yourself or you’re wondering whether or not you can claim tax relief when submitting returns, you’ll want to understand all the ins and outs of the claim process. 

For those who want to know more about tax relief, how to claim it, and eligibility for claims, this post will take you through everything you need to know about tax relief. 

What is tax relief?

Tax relief is essentially a reduction in the amount of tax payable to the government. The amount of tax you pay is typically based on your monthly earnings. The more you earn, the higher the percentage of tax you will typically pay. If you are self-employed, the amount of money you bring in every month can vary. That is why many sole traders or self-employed people spend quite a bit of time on their tax returns. 

If you work from home or work for yourself, you can claim back many expenses to reduce the amount of tax you pay. However, if you work for a corporation or other company, then you usually cannot claim tax back on as many things. 

How does tax relief work?

When claiming for tax relief, you will have to file a tax return. This is a declaration of everything you’ve earned, the amount of tax you’ve paid and an application for the tax relief you’re claiming. Tax relief is issued to individuals in the form of a refund, known as a tax rebate. 

Am I eligible to claim tax relief?

The eligibility for tax relief depends on various factors, including your specific circumstances, income level, and the tax laws of your jurisdiction. To determine if you can claim tax relief, you should consult with a tax professional or refer to the official guidelines provided by the tax authorities in your area.

What types of tax relief can I claim?

You can claim various types of tax relief based on your specific situation. Examples of tax relief categories include:

  • Research and Development (R&D) Tax Relief: This tax relief encourages innovation by offering tax benefits to businesses that specialise in research and development of new products and technologies that will ultimately improve the economy and add value to society. If you run a company that is constantly thinking about ways to improve products or develop new ones, then you may be eligible for R&D tax relief.
  • Mileage and Travel Expenses: If you use your vehicle for work purposes, you may be able to claim mileage and travel expenses to reduce your tax liability. You can also claim mileage tax relief if you pay for your own fuel while using a company car. Another eligible claim for tax relief under mileage and travel expenses is public transport. You cannot claim this if you have to travel to your place of work, however, you can claim it if you have to travel somewhere temporarily, like meetings or client demonstrations. 
  • Home Office Expenses: If you work from home, you can claim a portion of your home expenses, such as rent or mortgage interest, utility bills, and internet costs, as tax relief. This is particularly useful for those who work from home and for themselves. In some instances, you can also claim a portion of your mortgage and rent, as long as you can prove that you have a designated spot in your home that is used exclusively for work. Think about the space your home office takes up. This square footage can be deductible from tax. 
  • Tax Relief on Professional Fees: In your line of work, if you are required to pay any kind of subscription towards your professional title, then you will also be able to claim these subscription fees as tax relief. Qualifying subscriptions include anything that you use as a tool to help you do your work, a professional body fee or a trade union fee. If you are submitting these fees as part of your tax relief claim, you should note that not all Trade Unions and professional bodies have been approved by the tax office and, therefore, you need to ensure that you can still make a tax relief claim for the ones relevant to you. 

How do I claim tax relief?

The process for claiming tax relief can vary depending on the type of relief and your specific circumstances. In most cases, you will need to include relevant details and documentation in your tax return. It’s essential to maintain accurate records and consult with a tax professional to ensure that you are claiming the relief correctly. If you have any doubts surrounding your tax return and claiming tax relief, the friendly team of consultants at Braant will happily help you. 

Contact us for expert R&D tax relief services

Our specialists in R&D tax relief can provide businesses with big rebates. Essentially, if a business can prove that their employee’s time and some other expenses are associated exclusively with a new project, then it may be possible for them to R&D tax relief. Some projects are more technical than others, which is why the best tax relief companies will have accountants who specialise in specific fields. 

Braant’s tax relief services can help anyone from SMEs to non-UK businesses submit claims through relevant R&D schemes and are always on hand to talk about any queries you may have. If you want to learn more about R&D tax relief, you can refer to Braant’s services for expert guidance.

Final Thoughts

Tax relief offers individuals and businesses the opportunity to lower their tax liabilities through deductions, credits, and exemptions. By understanding the different types of tax relief available, you can make informed decisions when it comes to managing your tax obligations. Remember to consult with a qualified tax professional or refer to official guidelines to determine your eligibility for tax relief and ensure compliance with tax laws.

Call us today.

We have the resources, the experts, the knowledge and experience to help your business grow. And with over 1,000 accountancy clients in the UK and London, the volume of our work allows us to share economies of scale with you.