Completing the Employment Page of Your Tax Return: A Comprehensive Guide

Important Note: While I am a qualified accountant, I am not your personal accountant. The information provided is accurate but intended for general guidance only. Everyone’s situation is unique, so use this advice carefully. If you’re unsure or have specific questions, please consult a qualified professional to avoid potential penalties.

Table of Contents

1. Who Needs to Complete the Employment Page?

2. How to Complete the Employment Page of Your Tax Return

3. What is a Close Company?

4. Claiming Tax Relief on Your Job Expenses

   • Business Travel and Subsistence Expenses

   • Fixed Deductions for Expenses

   • Professional Fees and Subscriptions

   • Other Expenses and Capital Allowances

5. Changes to Your Tax Code

1. Who Needs to Complete the Employment Page?
You need to fill out the employment section of your tax return if you were employed full-time, part-time, or on a casual basis during the tax year. This includes situations where you have a Limited Company and pay yourself through payroll. If you had multiple jobs during the tax year for which you are filing, you must complete separate sections for each job. Ensure that HMRC is aware of this by updating your return settings in your .GOV account with your HMRC user ID.

2. How to Complete the Employment Page of Your Tax Return
To fill out the employment page:

• Gross Pay: Enter the total amount of income before tax deductions.

• Employer Details: Provide your employer's name and any benefits received.

You can find these details on your:

• P45

• P60

• Payslips

• P11D

Key Points:

• Only report income tax deductions, not National Insurance contributions.

• Include any additional payments like tips or cash in hand not listed on your P60.

• Report taxable benefits listed on your P11D.

3. What is a Close Company?
If you are a director of a Limited Company, you need to indicate whether it is a close company on your SA100 tax return. A Close Company is defined as a Limited Company with five or fewer participants, or where all participants are directors. For most small Limited Companies, participants are shareholders. If you are the sole director and shareholder, select "yes." The rules for Close Companies can be complex, so seek professional advice if you're uncertain.

4. Claiming Tax Relief on Your Job Expenses
If you’ve paid for job-related expenses that were not reimbursed by your employer, you might be eligible for tax relief. Common claimable expenses include:

4.1 Business Travel and Subsistence Expenses
You can claim for:

• Travel Costs (excluding regular commuting)

• Food Costs (reasonable and related to business)

• Accommodation

• Mileage (for your personal vehicle; use HMRC's set rates and keep detailed records)

• Other Expenses (e.g., phone calls)

4.2 Fixed Deductions for Expenses
HMRC allows claims for:

• Specialist Work Clothes (e.g., uniforms, safety gear)

• Occupational Uniforms (e.g., NHS, police uniforms)

• Small Tools (e.g., drills)

You can claim either the actual cost or the flat rate set by HMRC, but keep receipts for actual expenses.
4.3 Professional Fees and Subscriptions
Claim tax relief for fees and subscriptions to approved professional organizations. Check eligibility on the HMRC website.
4.4 Other Expenses and Capital Allowances
Include costs for:

• Small Equipment (e.g., drills, laptop accessories)

• Capital Allowances (for expensive items like laptops, excluding cars or vans)

Ensure all claimed expenses are eligible and supported by receipts.

5. Changes to Your Tax Code
If you declare P11D benefits or claim expenses, HMRC might adjust your tax code. This adjustment could affect your net pay. After submitting your tax return, HMRC may adjust your tax code for the upcoming year, potentially leading to higher tax deductions and a possible refund if you receive taxable benefits in kind.