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Construction Industry Workers: Don’t Forget Your Flat-Rate Expenses

Tax Preparation Specialist Issues Pre-Christmas Reminder to Claim Employee Tax Relief

Workers within the UK’s construction industry were today urged to ensure that they are making full utilisation of HMRC’s flat-rate expenses scheme to avoid missing out on their full available tax relief. Tax preparation specialist David Redfern, Managing Director of DSR Tax Claims Ltd, issued his timely reminder to construction workers in the run up to the festive period to ensure those within the construction sector do not miss out on valuable tax relief.

According to the tax experts at DSR Tax Claims Ltd, most employees can use flat-rate expenses as an easier way of claiming tax relief on their work-related expenses without the hassle of having to keep receipts or detailed financial records. HMRC sets a “flat rate” of expense that can be claimed, rather than employees claiming the actual cost of their work expenses. These expenses can comprise such items as tools, protective and safety gear and cost of professional subscriptions. Redfern urged all construction workers to ensure that they were fully utilising their employee tax relief, stating that “It might surprise many construction workers to discover just how quickly their work expenses can add up – whether they relate to their work uniform or the cost of obtaining and maintaining their CSCS (Construction Skills Certification Scheme) card”. He added that “Not everyone can be bothered with the fuss of claiming for each and every receipt they get and that is where HMRC’s flat-rate expense scheme comes in – by fully utilising this tax relief scheme, construction workers can make sure that they are still claiming their available tax relief without the need to keep time-consuming in-depth financial records. In the run up to Christmas, every penny counts and all you need to do is fill in a simple HMRC form”.

Redfern reminded construction workers that flat-rate expenses are only applicable to construction workers who work for an employer and pay tax via the PAYE (Pay As You Earn) system. Construction contractors who are part of the CIS (Construction Industry Scheme) are required to use the Simplified Expenses scheme in conjunction with their Self Assessment tax return instead. He commented that “Although CIS workers can’t use flat-rate expenses as they are for employees only, contractors can still make easy work of their expenses by using HMRC’s simplified expenses scheme. Although you can’t claim the actual cost of your expenses, simplified expenses can help you to make full use of the tax relief options open to you”. Redfern finished with a word of warning to those tempted to abuse the tax relief schemes, stating that “HMRC take tax compliance very seriously and although flat-rate and simplified expenses are an easy way to claim tax relief, HMRC’s system of fines and penalties will soon outweigh the benefit where tax evasion is discovered”.

About DSR Tax Claims Ltd

DSR Tax Claims Ltd are a firm of tax rebate specialists serving clients nationwide. DSR Tax Claims are tax preparation experts who specialise in identifying potential allowable expenses for tax rebates for clients. Their specialist team can help employed and self-employed subcontractors with all relevant paperwork to ensure their claim is handled in an accurate and efficient manner.

 

For more about DSR Tax Claims, visit https://dsrtaxclaims.co.uk/

About Elizabeth Jordan

Elizabeth Jordan
I'm the Assistant Editor on BMJ. If you have any product or people information, or some news you'd like to share, please feel free to email me.

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