Tax rebates explained: What might you be missing out on?

Many UK workers are unaware that they could be owed hundreds or even thousands of pounds in tax rebates. These aren’t bonuses or handouts; they’re refunds of tax you may have overpaid. 

If you’ve used your own car for work, paid for job-related expenses, worked from home, or supported a partner on a lower income, you may be entitled to claim tax relief from HMRC. In some cases, claims can be backdated for up to four tax years, making the potential refunds even more valuable.

Below, we break down the most common UK tax rebates and reliefs and explain how they work.

Marriage Tax Allowance

The Marriage Tax Allowance is one of the most misunderstood tax benefits. It allows married couples and civil partners to share part of their tax-free personal allowance.

If one partner earns below the personal allowance (£12,570) and the other is a basic-rate taxpayer, the lower-earning partner can transfer up to £1,260 of their unused allowance. This can reduce the higher earner’s tax bill by up to £252 per year.

Eligibility:

• You must be married or in a civil partnership

• One partner must earn less than the personal allowance

• The other must not pay higher-rate tax

• Claims can be backdated for up to four years

Many eligible couples never claim this allowance, meaning that HMRC is holding on to money that could be rightfully yours.

Don’t miss out – use our free guide or get some help from our  recommended provider, who can submit the claim on your behalf. 

Work Expense Claims

If you’ve paid for items or services required to do your job and your employer hasn’t reimbursed you, you may be entitled to tax relief.

Common allowable expenses include:

• Uniforms or specialist work clothing (not everyday wear)

• Tools and equipment essential for your role

• Professional subscriptions or licences

• Safety equipment

• Cleaning or maintenance of uniforms

Rather than getting a direct refund of the full cost, HMRC gives tax relief based on the tax you paid. For example, a £150 expense could result in £30–£60 back, depending on your tax band.

Check out our guide to work-related expenses 

Working from home 

If you regularly worked from home, either full-time or part-time, you may be entitled to claim tax relief for the extra household costs involved.If you regularly work from home, you can claim tax deductions for the associated extra costs – like heating and lighting. 

This includes increased expenses such as:

• Heating

• Electricity

• Metered water

You can either:

• Claim a flat-rate allowance (£6 per week), or

• Claim actual additional costs (with evidence)

If you didn’t receive this relief automatically through your PAYE tax code, you can still claim it via a tax return or HMRC online account and backdate it for previous years.

Business Mileage

Business mileage 

This is an area millions of people overlook – but there are significant savings to me made by submitting a tax claim for your business milage. 

If you drive your own vehicle for work purposes, such as visiting clients, travelling between job sites, or attending meetings, you may be entitled to mileage tax relief. HMRC sets approved mileage rates, and if your employer does not reimburse you fully (or at all), you can claim tax back on the difference.

HMRC approved mileage rates:

• 45p per mile for the first 10,000 miles

• 25p per mile thereafter
  

For many workers, these claims can add up quickly. In some cases, eligible individuals can receive rebates worth up to £4,000, depending on how often they drive for work and how many years they are claiming for.

To qualify for most mileage and expense claims, you’ll typically need to earn over £18,000 per year and have paid income tax.

There are legal experts who specialise in this precisely area – and can do the legwork of getting you a big rebate.

Other rebates you may be eligible for: 

In addition to the above, you may also qualify for:

Flat Rate Expense Allowance

Some professions (e.g. construction workers, mechanics, nurses) qualify for a standard annual expense deduction, even if you don’t keep receipts.

Overpaid PAYE Tax

If you:

• Changed jobs

• Were on emergency tax

• Worked part of the year

• Were furloughed or on reduced hours

You may have paid too much tax through PAYE and be due a refund.

Professional Fees and Subscriptions

Memberships required for your job, such as trade bodies or unions, are often tax-deductible.

NHS worker rebates

Work for the NHS? Don’t miss out on some important forms of financial relief in the form of NHS-related tax rebates that you might not know about. 

When to seek professional help

If your financial situation is complex because you own a business, manage investments, or are navigating life changes like marriage or homeownership it might be a good idea to schedule a consultation with a tax professional. Doing so early ensures you’ll get personalised advice and avoid the springtime rush.

Getting help with your claim

Identifying eligible expenses and calculating claims accurately can be time-consuming. That’s why many people choose to work with specialists such as Taxbax, who focus on mileage and work-related expense claims.

They can:

• Identify what you’re entitled to

• Handle calculations and submissions

• Reduce errors and HMRC delays

This can be especially useful for backdated or higher-value claims.

Prefer to claim directly?

You don’t have to use a third party. You can submit claims yourself through HMRC using:

• Your Personal Tax Account

• A Self Assessment tax return

Free government guidance is available, and understanding what you’re entitled to is the first step.

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk.

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