Increase in the Flat Rate Expense Allowance for Healthcare sector workers

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Certain healthcare employees, including those who work in care homes, who need to wear a uniform or specialised clothing for work and pay for the cost of laundering the uniform themselves are entitled to tax relief for this expense.

It would be time-consuming and cumbersome for them to calculate and retain evidence of these small individual amounts, so HMRC provides the relief in the form of a flat rate expense (FRE). The allowance provides the relief by means of an adjustment in the annual tax code.

The government is increasing the FRE from 6 April 2014 for relevant healthcare employees as follows. The amounts have been calculated according to the annual cost of laundering uniforms for each occupation type and have been agreed with healthcare sector trade unions and representative bodies.

Details of the changes can be found in the downloadable GMB bulletins attached.