HMRC is urging millions of employees such as nurses, hairdressers and construction workers to go online and directly check if they can claim extra cash back for work-related expenses, amid concerns they could be missing out on their full tax relief entitlement by using agencies instead.

The tax authority says some 85% of eligible taxpayers currently pay agents to claim their money, but points out that anyone who is paid via PAYE could claim the full amount of tax relief they are owed directly from HMRC, using its online Check if You Can Claim tool.

If eligible, taxpayers can log in to their personal tax account to claim for their tax relief online and, if their claim is approved, be paid within three weeks.

Records need to be kept of expenditure and receipts, and claims must be made within four years of the end of that tax year. Eligible employees will be paid tax relief at the rate of pay that they pay tax.

As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us.