Personal tax reliefs
The most commonly missed reliefs for employed and self-employed individuals include:
- Marriage Allowance — transfer £1,260 of your personal allowance to a spouse or civil partner if you earn under £12,570. Worth up to £252 per year, and you can backdate claims up to four years.
- Uniform and work clothing — if your employer requires you to wear a uniform and does not pay for its cleaning, you can claim a flat rate allowance, typically £60 per year.
- Professional subscriptions — subscriptions to approved professional bodies are fully deductible against employment income.
- Working from home allowance — if your employer requires you to work from home, you can claim £6 per week without receipts.
- Mileage relief — if you use your own car for work, you can claim 45p per mile for the first 10,000 miles and 25p thereafter.
Pension contribution relief
Contributions to a pension attract tax relief at your marginal rate. Basic rate taxpayers get 20% relief automatically added by the pension provider. Higher and additional rate taxpayers can claim the additional relief through Self Assessment. This is one of the most commonly missed reliefs for higher earners.
The annual allowance for pension contributions is £60,000 (or 100% of earnings, whichever is lower). Unused allowance from the previous three years can be carried forward.
Property reliefs
- Rent-a-Room relief — earn up to £7,500 per year tax-free by letting a furnished room in your main home.
- Replacement of domestic items — for landlords, the cost of replacing furniture, appliances, and fixtures is deductible.
- Mortgage interest — residential landlords can claim a 20% tax credit on mortgage interest payments.
Business reliefs
- Annual Investment Allowance — claim 100% of qualifying plant and machinery costs up to £1 million in the year of purchase.
- R&D Tax Credits — SMEs spending on qualifying research and development can claim an enhanced deduction or a cash payment from HMRC.
- Business Asset Disposal Relief — pay 10% CGT instead of the standard rate when selling a qualifying business.
Tax reliefs FAQs
Can I backdate a Marriage Allowance claim?
Yes. You can backdate a Marriage Allowance claim for up to 4 tax years. If you have been eligible since 2022/23 and have not yet claimed, you could be owed up to £1,008 in backdated relief, paid as a lump-sum tax refund. The claim is made via GOV.UK or through a tax consultant.
Do I need receipts to claim mileage relief?
You do not need fuel receipts, but you must keep a mileage log recording the date, destination, purpose, and distance of each business journey. HMRC can ask to see these records during a compliance check, so it is important to keep them contemporaneously rather than reconstructing them later.
How much pension relief can I claim?
You receive income tax relief on pension contributions at your marginal rate, up to the annual allowance of £60,000 (or 100% of your earnings if lower). Basic rate relief is added automatically. Higher and additional rate taxpayers must claim the additional relief through Self Assessment. Unused allowance from the previous 3 tax years can also be carried forward.