Teachers play a vital role in shaping future generations, yet they often do so while shouldering significant financial burdens. From purchasing classroom supplies to funding their own professional development, educators frequently find themselves spending out of pocket to ensure lessons run smoothly and effectively. In many cases, this spending becomes routine, blending into the background of day-to-day responsibilities. However, these costs can take a toll on personal finances if left unchecked.
What many teachers don’t realise is that some of these expenses may be reclaimable, either through tax relief or by listing them as allowable business expenses. Unfortunately, confusion around what qualifies and how to make a claim means many miss out on tax relief they are legally entitled to. The key to changing this lies in education — educators must understand the tax system and the options available to them, whether they are employed by a school or working independently as self-employed tutors.
Employment Status Dictates What You Can Claim
A teacher’s employment status significantly affects how expenses are handled for tax purposes. Generally, the tax system divides education professionals into two categories: employed teachers and self-employed tutors. Each category comes with its own rules regarding allowable expenses, methods for submitting claims, and the types of deductions that are eligible.
Understanding your employment classification is the first step to identifying which expenses may reduce your taxable income. For those who work both within schools and as private tutors, it’s essential to keep expenses and income streams clearly separated to avoid confusion when submitting tax returns.
The Situation for Employed Teachers
Teachers who work under contract with a school or educational institution are considered employees. These individuals are paid through PAYE (Pay As You Earn), which means income tax and National Insurance are automatically deducted from their salary. While this system simplifies tax obligations, it also means that claiming work-related expenses involves strict guidelines and limited opportunities.
Employer Reimbursements and Their Impact
If a school reimburses an employee in full for an expense, that teacher cannot claim it again for tax relief. Tax relief is intended to offset costs not covered by the employer. Teachers who self-fund certain necessary items or services may be able to claim tax relief, provided they can demonstrate the expense was incurred solely for carrying out their duties.
In other words, if the expense was not essential or was only partially related to work duties, it is unlikely to qualify for tax relief. Teachers must also be careful not to confuse what is helpful for doing their job with what is strictly required. The tax code only recognises the latter.
Expenses That Are Typically Disallowed
A common misunderstanding among teachers is assuming that anything work-related qualifies for relief. However, HMRC has clear restrictions. For example:
- Training courses that help develop new teaching methods are generally not claimable
- Stationery used for marking homework at home is not allowable
- General classroom supplies, such as decorative items or additional materials, are considered the school’s responsibility
Such expenses, though helpful and often paid for by the teacher, are not considered mandatory to perform the duties assigned by the employer. Therefore, they do not qualify for tax deductions.
Valid Expenses for Employed Teachers
While the scope is narrower, there are still categories where teachers may rightfully claim deductions. These include:
Professional Subscriptions
Teachers who pay annual fees to certain professional bodies may be able to claim tax relief on those payments. This is only applicable if the organisation is approved by HMRC and included in its official list. Teaching unions, subject-specific associations, and other recognised bodies often appear on this list. Subscriptions must be directly related to the teacher’s professional work.
Work-Related Travel
Ordinary commuting to and from a regular place of work does not qualify. However, if a teacher must travel between two workplaces during the same day, and this travel is necessary for their job, the costs incurred may be eligible for tax relief. Examples include:
- A specialist music teacher who travels between schools to conduct lessons
- A supply teacher moving between assignments during the same day
- A teacher attending mandatory training sessions at different locations
Public transport fares or mileage for these trips may be considered allowable if adequate records are maintained.
Protective and Specialist Clothing
Some educators are required to wear protective gear, such as lab coats, workshop aprons, or even safety goggles, depending on the nature of their teaching subject. If the school does not provide cleaning for this clothing and the teacher is responsible for maintaining it, they may claim a flat-rate expense. HMRC provides standard amounts that can be claimed annually without the need to submit receipts, although it is always advisable to retain documentation where possible.
Replacement PE Kit
While initial costs for physical education kits are typically not reimbursable, ongoing replacement of essential gear due to wear and tear may be considered eligible. Items like trainers and sports equipment must be used exclusively in the course of work duties and not for personal fitness or recreational use outside of school hours.
Position of Self-Employed Tutors
Educators who operate independently, offering private tuition or running small education businesses, are classified as self-employed. These individuals have greater flexibility in claiming expenses, as long as the costs are incurred wholly and exclusively for business purposes.
Understanding the Self-Employment Tax Rules
Self-employed tutors are responsible for managing their own tax affairs, including calculating income, deducting expenses, and submitting tax returns. The core principle is that any expense must be solely related to the business. If an item is used for both personal and business purposes, only the portion used for business can be claimed.
Tutors must ensure their record-keeping is accurate and up to date. This includes saving receipts, keeping logs of business mileage, and maintaining a clear separation between personal and professional finances.
Common Deductible Expenses for Tutors
Self-employed teachers can claim a wide range of business expenses. These include, but are not limited to:
Travel to Student Locations
When a tutor travels to a student’s home, a library, or another temporary venue to deliver lessons, travel costs can be claimed. This includes mileage for private vehicles or fares for trains, buses, and taxis. Travel logs should note the date, location, and purpose of each journey.
Subscriptions and Memberships
Fees paid to professional bodies that support your teaching practice may be deductible. These memberships can offer resources, insurance, or other benefits directly tied to your business operations.
DBS Check Fees
Enhanced background checks are often required for tutors working with children. The cost of applying for or renewing a DBS certificate can be treated as a necessary business expense if it is essential for operating legally and gaining trust from clients.
Using Your Home for Business
Many tutors use part of their home for lesson preparation, online teaching, or administration. A portion of household bills, such as utilities, internet, and even rent or mortgage interest, may be claimed. HMRC offers both simplified flat-rate deductions and actual cost calculations based on floor space and time used.
Educational Materials
The purchase of textbooks, digital content, learning aids, and stationery is generally allowed, provided these items are used exclusively for preparing or delivering lessons. The use of such materials for personal enrichment or unrelated activities must be excluded.
Insurance and Professional Services
Self-employed tutors often carry public liability insurance to protect themselves against claims from clients. This is a legitimate expense. Additionally, fees paid to accountants or for software used in managing accounts also fall under allowable costs.
Trading Allowance Option
The trading allowance is a simplified option available to self-employed individuals whose total income from trading is modest. If gross income is under a certain threshold, tutors can choose to deduct a flat £1,000 instead of itemising their expenses. This method is particularly useful for part-time tutors or those just starting out who may not have extensive records or complex financial activity.
Why Record-Keeping Is Critical
No matter how small or infrequent an expense may be, maintaining proper documentation is essential. HMRC may request evidence of claims, especially if there is an audit or inquiry. Keeping detailed records ensures that expenses can be verified and will not be rejected due to lack of proof.
For employed teachers, this means keeping receipts for unreimbursed professional subscriptions or cleaning costs. For self-employed tutors, it involves managing a comprehensive set of records, including invoices, bank statements, mileage logs, and payment receipts.
Navigating the Claims Process for Teachers
Understanding what expenses are allowed is only part of the challenge. Teachers must also understand the administrative steps involved in claiming these costs from HMRC. The process differs based on whether you are employed by a school or working independently.
We break down the exact steps for each situation, including how to fill out forms, which deadlines to observe, and what records to keep. By following these processes, teachers can ensure they don’t miss out on eligible tax relief.
For Employed Teachers: Claiming Through HMRC
Teachers employed through PAYE must take specific steps to claim relief on allowable job expenses. These claims apply only to costs that were not reimbursed by the employer and that meet HMRC’s criteria for being wholly necessary for performing the duties of the role.
Understanding the P87 Form
The most common method for employed teachers to claim tax relief is by using the P87 form. This form can be completed online or submitted via post. It’s designed for those whose claim does not exceed £2,500 for the tax year.
When to Use the P87 Form
The P87 form is suitable when:
- You’re claiming job expenses that have not been reimbursed by your employer
- Your total expenses are less than £2,500 for the tax year
- You are not submitting a Self Assessment tax return
If your claim is higher than this amount or you already file a tax return, you must use the Self Assessment process instead.
Methods of Submission
There are three ways to submit a P87 claim:
- Online through HMRC’s digital services – This is often the quickest and most efficient option. You’ll need a Government Gateway user ID and password to access the service.
- By post – You can download and print the P87 form from the HMRC website. Ensure you fill it out in one sitting, as the website does not allow you to save progress.
- By phone – If you’ve claimed expenses in previous years and your total claim is under £1,000 (or under £2,500 for subscriptions), you can call HMRC at 0300 200 3300 to process your claim over the phone.
What You’ll Need to Complete the Form
To complete the P87 form, you’ll need the following details:
- Your National Insurance number
- Employer name and PAYE reference
- Job title and industry
- Specific details of your expenses (e.g., subscription name, amount, dates)
- Mileage or public transport data, if claiming travel costs
- Receipts or logs for your own records (not submitted unless requested)
It’s important to provide accurate information. HMRC may ask for evidence if your claim is selected for review.
Deadlines for Expense Claims
Claims must be made within four years of the end of the tax year in which the expenses were incurred. Missing this window means losing the chance to claim for that year.
For example:
- Expenses for the 2019/20 tax year (ending 5 April 2020) must be claimed by 5 April 2024
- Expenses for the 2020/21 tax year must be claimed by 5 April 2025
It’s advisable to submit claims as early as possible to avoid missing deadlines or facing delays in receiving tax relief.
How Reimbursement Works
If your claim is accepted, HMRC will either:
- Adjust your tax code for the current or next year to reflect the relief
- Issue a tax refund as a lump sum payment
Adjusting your tax code allows HMRC to collect less tax from your salary each month, effectively giving you your relief in small, regular increments.
Claiming Through Self Assessment for Employed Teachers
If your job expenses exceed £2,500 in a tax year, or you already file a tax return for other income (such as rental property or freelance work), you will need to use the Self Assessment system.
This involves registering with HMRC, completing an annual return, and listing your allowable employment expenses under the appropriate section. You must also retain evidence in case of an enquiry.
Record-Keeping Tips for Employed Teachers
Even if receipts and documents are not submitted with the P87 or tax return, they must be kept for at least 22 months after the end of the tax year to which they relate. In the case of Self Assessment, documents should be retained for five years from the submission deadline.
Helpful records include:
- Subscription invoices or confirmation emails
- Mileage logs with dates, destinations, and purpose of trips
- Records of cleaning or clothing maintenance costs
- Employer correspondence about what they do and don’t reimburse
Managing Expenses Through Self Assessment
Self-employed tutors operate under different rules. Instead of a P87 form, they must register for Self Assessment and submit a tax return annually. The process is more detailed, but it also offers greater opportunities for claiming a wider variety of business expenses.
Registering as Self-Employed
Before you can submit a return, you need to register as self-employed with HMRC. This must be done by 5 October following the end of the tax year in which you started your business. Once registered, you will receive a Unique Taxpayer Reference (UTR) number.
For example, if you began tutoring in May 2024, you must register by 5 October 2025 to avoid penalties.
Deadlines for Self Assessment
There are three key deadlines to keep in mind:
- 31 October – Deadline for filing paper tax returns
- 31 January – Deadline for online tax returns for the previous tax year
- 31 January – Deadline for paying any tax owed
Failing to meet these deadlines will result in penalties. Even if you owe no tax, missing the filing deadline can lead to a £100 fine.
Recording and Categorising Expenses
Self-employed tutors must keep detailed records of their income and expenses throughout the year. These should be organised into categories, including:
- Travel (mileage or public transport)
- Professional subscriptions
- Insurance (e.g., public liability)
- Office expenses (e.g., internet, utilities for home office use)
- Materials (e.g., textbooks, stationery, educational software)
- Bank fees and accounting services
Each expense must meet the test of being wholly and exclusively for business use. Where dual use exists — such as a laptop used for both work and personal tasks — only the portion related to business can be claimed.
Flat-Rate and Simplified Expenses
To reduce the burden of record-keeping, HMRC offers simplified expenses in some areas. These include:
- Home office use – Based on hours worked from home each month
- Vehicle use – A fixed rate per mile driven for business purposes
These flat rates are often easier to apply than calculating exact costs for utilities or fuel, particularly for small tutoring businesses.
The Trading Allowance
If your total income from self-employment is under £1,000 per year, you may not need to declare it at all. If your income is higher, but your actual expenses are minimal, you can elect to use the £1,000 trading allowance instead of deducting actual costs.
This can simplify tax reporting for part-time tutors or those just starting their business. However, it may not be beneficial if your true expenses exceed the allowance.
Submitting the Tax Return
Most self-employed individuals submit their tax return online. The system will walk you through each section, asking about:
- Your personal details
- Your income from self-employment
- Your business expenses
- Other sources of income (e.g., dividends, interest)
- Tax reliefs or allowances
After completing the return, you’ll be given a calculation of your tax liability. You must then pay any tax owed by 31 January. For larger amounts, you may also be required to make advance payments for the following tax year, known as payments on account.
What to Do If You Make a Mistake
Mistakes happen, especially for those new to self-employment. If you submit a return and later realise there was an error, you have 12 months from the deadline to amend it.
For example, if you filed a return for the 2023/24 tax year by 31 January 2025, you can make corrections up until 31 January 2026. If HMRC reviews your return and finds inaccuracies that were careless or deliberate, you could be fined. That’s why keeping accurate records and double-checking your information is essential.
Software and Tools to Help
While not required, many tutors find it easier to track their expenses and complete returns using accounting software. These tools often offer:
- Digital receipt storage
- Income and expense tracking
- Mileage logs
- Reminders for tax deadlines
- Automatic calculation of allowable expenses
Using such tools can reduce the risk of errors and provide peace of mind throughout the tax year.
Seeking Professional Help
While many self-employed individuals complete their returns independently, those with more complex finances may benefit from working with an accountant. This is particularly useful if you:
- Have multiple income sources
- Share income with a partner
- Plan to claim capital allowances
- Work partly overseas
A qualified advisor can help ensure you’re claiming everything you’re entitled to while staying compliant with the rules.
Knowing Your Rights and Responsibilities
Many teachers underestimate the importance of familiarizing themselves with tax procedures. Whether you’re employed or self-employed, knowing how the process works is crucial for accurate and timely claims. The system is not designed to be punitive but to ensure that professionals can receive relief for legitimate work-related costs. However, the onus lies on the individual to provide proof and follow guidelines set by HMRC.
For salaried teachers, understanding what constitutes a valid claim is the first step. Expenses must be necessary, wholly related to your duties, and not reimbursed by your employer. Self-employed tutors, on the other hand, enjoy more leniency in what they can claim but are also subject to more scrutiny if their records are not well maintained.
Keeping Detailed Records
Record-keeping is at the core of successful expense claims. HMRC requires that you retain proof of expenses, such as invoices, receipts, and bank statements. These documents should be organized by category and tax year.
For employed teachers, this might include:
- Receipts for travel between workplaces
- Annual membership renewals to professional organisations
- Laundry or maintenance costs for specialist clothing
For self-employed tutors:
- Invoices for educational materials and online resources
- Fuel or travel logs to and from student locations
- Utility bills for home office usage
Ideally, digital tools or cloud storage solutions should be used to back up paper receipts to ensure they’re not lost over time.
Understanding What Counts as Evidence
When submitting a claim, you need more than just a verbal assertion that an item was work-related. Evidence typically includes:
- Dated receipts showing what was purchased
- Proof of payment (such as bank statements)
- Logs showing travel distance and destination
- Utility breakdowns if you work from home
For teachers claiming clothing maintenance, flat-rate expenses may be applied without exact receipts, but you must still be able to demonstrate that the claim is reasonable.
Tools and Methods for Filing Expense Claims
Digital Submission via HMRC
The most straightforward way for employed teachers to claim expenses is through the online P87 form provided by HMRC. This tool allows claimants to input multiple expenses across categories in one session. The form is designed for people who aren’t already required to submit a Self Assessment return.
To complete the P87, you’ll need:
- Your National Insurance number
- Employer PAYE reference
- Details of the expenses, broken down by type
- Receipts or calculations to support your claim
The online process also gives users the ability to track progress and ensure that everything is submitted within the allowable time window.
Using the Self Assessment Tax Return
For those who are self-employed or already required to file a tax return, expenses are entered directly into the Self Assessment system. This annual process includes:
- Declaring total income from your tutoring or educational services
- Itemizing allowable expenses
- Calculating your total tax liability
Self-employed teachers should complete the SA103S or SA103F form, depending on the size and complexity of their business. You must keep records for at least five years following the 31 January submission deadline of the relevant tax year.
Avoiding Common Mistakes
Claiming Personal Expenses as Business Costs
One of the most frequent errors is mixing personal and business expenses. For example, if you use your phone for both work and personal calls, you can only claim the proportion used for tutoring. The same applies to vehicle usage, internet bills, and office furniture.
If you cannot clearly justify the work-related portion, HMRC may reject the claim or reduce the amount significantly. Self-employed tutors must be especially cautious when calculating mixed-use items and should consider keeping separate accounts or using mobile apps to track usage.
Failing to Submit Within the Deadline
Employed teachers have four years to submit a P87 claim from the end of the tax year in which the expense was incurred. Missing this deadline means forfeiting the relief, regardless of how legitimate the expense is.
Self-employed individuals face more rigid deadlines. Self Assessment returns must be submitted by 31 January following the end of the tax year. Missing this can result in penalties:
- £100 initial fine
- Additional charges after three, six, and twelve months
It’s crucial to mark deadlines in calendars and set reminders well in advance.
Incomplete or Inaccurate Forms
Errors on submission forms can delay claims or result in outright rejection. These can include:
- Incorrect National Insurance numbers
- Inaccurate employer details
- Mismatched figures between the forms and attached receipts
Always double-check your entries and, if necessary, seek guidance from a tax advisor or professional accountant. While their fees may be an additional cost, they could save you more in the long run by maximizing your claim or avoiding penalties.
Planning Ahead for Future Claims
Creating a System for Tracking
Instead of scrambling to collect receipts and records at the end of the tax year, teachers should establish an ongoing system. Options include:
- Using expense tracking apps tailored for educators or freelancers
- Keeping a physical folder divided by months and categories
- Setting aside time monthly to log expenses and scan receipts
This ongoing process will reduce end-of-year stress and ensure you don’t miss out on smaller, frequent expenses that add up over time.
Categorizing and Forecasting Expenses
As you develop your career or tutoring business, your expense categories will likely grow. Teachers should start categorizing expenses and even forecasting them at the beginning of each year. This not only makes filing simpler but can help you budget effectively.
Common categories include:
- Travel and transport
- Teaching aids and subscriptions
- Administrative costs (insurance, registration fees)
- Professional development
- Office space and utilities (for self-employed tutors)
A simple spreadsheet or online tool can help you estimate how much you’ll spend and how much of it is claimable.
Reviewing Your Claims Each Year
Each tax year may bring changes in HMRC rules or your personal circumstances. Teachers should review their eligible expenses annually, particularly if they’ve taken on new responsibilities, changed schools, or started private tutoring on the side.
By reviewing your claims:
- You may discover additional allowable categories
- You ensure compliance with updated HMRC regulations
- You can correct errors from previous submissions
This review is best done alongside the filing of your return, but you can also consult with a tax expert to run a check before you submit.
Benefits of Expense Claims for Teachers
Reducing Your Tax Liability
For employed teachers, even a few small expense claims can make a difference. A tax rebate on professional fees or travel costs could result in a refund at the end of the year. For those in higher tax brackets, the savings are more significant.
For the self-employed, claiming every allowable cost reduces your profit and, consequently, your income tax and National Insurance contributions. By deducting these legitimate expenses, tutors are left with more take-home pay without breaching any tax rules.
Boosting Financial Awareness
Going through the process of tracking, submitting, and reviewing expenses enhances financial literacy. It encourages teachers to think strategically about how they spend their money on work-related tools, subscriptions, or development courses. This financial awareness can lead to smarter spending habits and better overall money management.
Many teachers, once they understand the system, find that they can better plan for costs associated with their role—be it digital learning platforms, textbooks, or specialized materials for SEN students.
Supporting Career Growth
Being financially organized isn’t just about tax efficiency. When teachers are proactive in claiming expenses, it often reflects a broader approach to professional development. You’re more likely to seek out memberships to accredited bodies, attend conferences, and invest in your own career growth when you know some of the cost can be offset.
For self-employed educators, this understanding can lead to expanding your services, investing in better marketing, or even hiring support staff—each of which can be classified under business expenses and offer long-term gains.
Avoiding Overpayment
Every year, thousands of teachers overpay on their taxes simply because they do not claim for what they are entitled to. Whether it’s out of uncertainty or lack of awareness, this oversight benefits no one. Learning how to claim expenses helps ensure that teachers only pay the tax they legally owe and nothing more.
With inflation and rising living costs, making the most of every pound matters. Expense claims may not feel like a windfall, but they can contribute meaningfully to a teacher’s annual finances, especially over multiple years.
Conclusion
Understanding expense claims is an essential step toward financial empowerment for both employed teachers and self-employed tutors. In a profession where personal investment in classroom resources, travel, and professional development is common, knowing which of these costs can be reclaimed through tax relief can make a meaningful difference.
For employed teachers, the rules around allowable expenses are stricter, yet there are still opportunities to claim relief for specific work-related costs such as professional memberships, travel between multiple work locations, and maintenance of necessary clothing or tools. Recognizing and using tools like the HMRC’s P87 form, staying within deadlines, and ensuring the expenses meet HMRC’s criteria are crucial to a successful claim.
Self-employed educators enjoy broader flexibility when it comes to allowable expenses. From home office deductions and travel costs to educational materials and business insurance, they can deduct any spending that is wholly and exclusively tied to their tutoring activities. Proper recordkeeping, timely registration with HMRC, and accurate Self Assessment submissions form the backbone of managing taxes effectively as a sole trader in the education sector.
Ultimately, whether you’re employed by a school or running your own tutoring service, learning how to manage, track, and claim expenses can ease financial pressure, improve tax efficiency, and enable you to invest more confidently in your professional practice. Equipping yourself with this knowledge helps ensure that the out-of-pocket investments you make to support your students are not just generous but also justly rewarded.