HM Revenue and Customs (HMRC) is warning workers to stay vigilant or risk of owing them a lot of money. The government department warned people working from home to “always check” they are eligible to make a claim for a tax refund.
It also cautioned against falling for ads that promise to help workers receive quick tax refunds with relative ease. If workers do not check they’re eligible for a tax refund, they could be at risk of falling into debt with HMRC.
In fact, workers could end up losing thousands of pounds by trusting agencies with false promises. HMRC wrote on X: “Don’t get caught out by ads promising quick tax refunds for working from home. Always check if you’re eligible before making a claim. Avoid agent fees by claiming directly with HMRC.”
As part of its ‘Don’t Get Caught Out’ campaign, HMRC provided the example of a hypothetical worker who files for a £4,000 work-related expense. The agency he took the expense claim out with took £1,600 as a fee.
However, just a year later, the worker was informed by the government department that he had no right to claim those expenses and was now expected to pay the full amount back, plus interest. To make matters worse, the worker is unable to receive the £1,600 fee back from the agency due to a ‘third-party agreement’ he signed at the time, meaning he’s completely responsible for finding the money to pay back HMRC.
All the things that cannot be claimed for work expenses
It’s important to remember when looking at an advert or an agency for work-related refunds that several things cannot be claimed for expenses. For instance:
- Food you bring from home when travelling to a temporary workplace
- Work from home costs when you have an office base but choose not to work there
- Union fees
- Work expenses already covered by your employer
- Workwear that doesn’t include a visible logo
- Uniform that has already been provided by an employer
- Work from home costs if your contract is part of a flexible working arrangement
- Travel and overnight expenses for commuting to your normal place of work
- Uniform washing costs when your employer has a laundry facility
Workers are also being advised to keep an eye out for warning signs with tax companies or agencies. For example, you should be cautious if you’re never asked to provide receipts or other proof of expenses that are being claimed on your behalf.
If you think you’ve made a tax refund that you were not eligible for, you should contact HMRC as soon as possible as they can provide extra support to customers who need it. Find out more on contacting the HMRC here.
