What Are Flat Rate Expenses?
Flat rate expenses are fixed tax deductions that HMRC allows for the cost of maintaining work clothing, tools, and equipment used in certain jobs. Instead of tracking and claiming the exact amount spent, you deduct a set amount agreed between HMRC and relevant trade unions or professional bodies.
These deductions reduce your taxable income, meaning you pay less income tax. The relief is available to both employees and self-employed individuals, though the rules differ slightly for each.
Flat Rate Expenses for Employees
Employees can claim flat rate expenses if they are required to maintain, repair, or replace tools and clothing needed for work. The key rule is that your employer does not already reimburse you for these costs.
Industry-Specific Flat Rate Deductions
HMRC publishes agreed flat rate deductions for a wide range of occupations. Some common examples:
| Occupation/Industry | Annual flat rate |
|---|---|
| Nursing, midwifery, and healthcare | £185 |
| Construction (labourers) | £140 |
| Uniformed police officers (including CID) | £140 |
| Fire service | £80 |
| Electricians, electrical workers | £120 |
| Plumbers, heating engineers | £120 |
| Vehicle mechanics | £120 |
| Joiners, carpenters | £140 |
| Airline pilots and co-pilots | £1,022 |
| Prison officers | £80 |
| Agriculture | £100 |
| Banks and building societies | £36 |
| Uniformed ambulance staff | £185 |
| Armed forces | £100 |
The full list is published by HMRC in their Employment Income Manual (EIM32712) and covers dozens of trades and industries.
How the Deduction Works
The flat rate amount is deducted from your gross income before tax is calculated. If you are a basic rate taxpayer (20%), a flat rate deduction of £140 saves you £28 in tax. A higher rate taxpayer (40%) saves £56 on the same deduction.
| Tax rate | Flat rate deduction | Annual tax saving |
|---|---|---|
| Basic rate (20%) | £140 | £28 |
| Higher rate (40%) | £140 | £56 |
| Additional rate (45%) | £140 | £63 |
Claiming Through Your Tax Code
The simplest way to claim is to contact HMRC, who will adjust your tax code to include the flat rate deduction. This means you receive the relief automatically through PAYE each pay period.
You can also claim through a self-assessment tax return if you file one.
Claiming for Work Clothing
Beyond the industry-specific rates, employees who must wear a uniform or protective clothing at work can claim a general flat rate deduction of £60 per year for laundering costs. This applies where:
- Your employer requires you to wear a recognisable uniform, branded clothing, or protective equipment
- You wash, repair, or replace the clothing yourself
- Your employer does not reimburse these costs
Ordinary clothing that you could wear outside work does not qualify, even if your employer requires you to dress smartly.
Self-Employed Flat Rate Expenses
Self-employed individuals can use flat rate amounts through the simplified expenses scheme, which covers vehicles, working from home, and business premises used as a home. These are separate from the employee flat rate deductions described above.
For tax-deductible expenses that do not fall under simplified expenses, self-employed individuals must generally keep records and claim actual costs.
How to Claim Flat Rate Expenses
For Employees
- Online — Use the HMRC online service to check if your job is on the flat rate list and submit a claim
- By phone — Call HMRC to have your tax code adjusted
- P87 form — Submit a P87 claim form if your total employment expenses are under £2,500
- Self-assessment — Include the claim on your tax return if you already file one
For Previous Years
You can backdate claims for up to four tax years. If you have never claimed the flat rate deduction you are entitled to, you can reclaim the tax relief for all eligible past years in one go.
Flat Rate Expenses vs Actual Expenses
You must choose between claiming the flat rate amount and claiming actual expenses for the same category of cost. You cannot claim both.
| Method | Advantage | Disadvantage |
|---|---|---|
| Flat rate | No receipts needed, simple | May be less than actual costs |
| Actual expenses | Claim the full amount spent | Must keep records and receipts |
For most employees, the flat rate is simpler and adequate. If your actual costs are significantly higher than the flat rate, claiming actual expenses through self-assessment may be more beneficial.
If you are self-employed rather than an employee, flat rate expenses do not apply; see workwear and uniform expenses for what the business itself can claim.
Common Mistakes to Avoid
- Claiming when your employer reimburses you — If your employer pays for your uniform cleaning or provides tools, you cannot also claim the flat rate deduction
- Claiming for ordinary clothing — Suits, shoes, and everyday workwear do not qualify unless they are a branded uniform or protective equipment
- Double-claiming — You cannot claim the flat rate deduction and actual expenses for the same cost
- Forgetting to backdate — Many eligible employees miss out on years of unclaimed relief