Calculate HMRC flat rate expenses for uniforms, tools, and work equipment. Find your industry's fixed deduction and annual tax saving.
HMRC flat rate expenses (also called 'agreed deductions' or 'industry flat rates') are fixed annual tax deductions for employees in certain occupations who wear uniforms or use tools for work. Instead of claiming actual costs, you use HMRC's pre-agreed amount. For example, nurses can claim £100/year and plumbers £185/year without receipts.
You can claim flat rate expenses by completing a P87 form (for claims under £2,500) or via your Self Assessment return. You can claim for the current year and up to 4 previous tax years. HMRC can also add the allowance to your tax code so you receive relief automatically in future years through reduced PAYE deductions.
Yes — if your actual costs exceed the flat rate, you can claim actual costs instead, but you will need to provide evidence (receipts). For most workers, the flat rate is simpler and sufficient. You cannot claim both the flat rate and actual costs for the same expense category.
Yes — flat rate expenses cover the cost of maintaining and replacing tools for certain trades such as carpenters, electricians, plumbers, and vehicle mechanics. The amount varies by occupation. If you purchase expensive tools, you may be able to claim capital allowances separately in addition to or instead of the flat rate.
Flat rate expenses are only available for specific occupations listed on HMRC's agreed schedule. If your occupation is not listed, you can still claim actual costs for work-related clothing and tools (but not ordinary clothing that could be worn outside work). Self-employed people use a different system — they claim actual expenses on their Self Assessment.