Standard allowances and rules
Agreed standard allowances for employees
In many trades there are standard amounts agreed with HMRC to cover expenses for clothing and tools. These are called ‘flat rate’ deductions. Flat rate deductions avoid the need to keep receipts for expenses or to make detailed claims.
An allowance for these expenses is made by increasing your tax-free pay. This means that your PAYE code number will change. The number part of the code should increase by the ‘flat rate’ amount. To get your flat rate deduction, contact your tax office and explain why you think you are entitled.
More information on flat rate deductions can be found on the HMRC website at
Rules for expenses for specific costs and occupations
Detailed guidance on expenses for specific occupations can be found on the HM Revenue and Customs website at http://www.hmrc.gov.uk/manuals/eimanual/EIM31623.htm.