In pursuit of some level of consistency, HM Revenue & Customs (HMRC) is due to mandate a new P87 form which will come into effect from 7 May.

What is a P87 form?

Both workers and their agents can use a P87 form to claim tax relief on work expenses (work uniform, or professional subscriptions, for example), but the form can only be used for claims relating to an employee and not to a self-employed individual.

If you are self-employed, you should claim tax rebates via the Self-Assessment system.

Tax relief on employment expenses

Currently, claims for income tax relief on employment expenses can be made via:

  • a Self-Assessment tax return
  • an online service that is available to taxpayers (not agents)
  • a paper P87 form, available from GOV.UK
  • telephone (subject to limits) if a claim has been made for a previous tax year or,
  • a substitute claim form or letter.

From 7 May 2022, claims for income tax relief on employment expenses can only be made on a standard P87 form, which can be found here.

The forms will be processed without intervention from HMRC employees, with the aid of robotics, for the most part.

The exception to this will be those non-compliant applications (i.e., containing attachments) which will be subject to longer processing times as a result of needing to be attended to manually.

In its new format, the P87 form will deal with multi-year claims and will have space for detail spanning up to five employments. Where an individual has more than five employments, a separate form will be required.

HMRC will reject claims that are made on substitute claim forms, but the other options outlined above will still be available.

How can George Hay help?

Our team can help you to keep your personal tax affairs in order, and to ensure that any claims made for tax reliefs are done so compliantly.

To find out more about how we can help you or to discuss your requirements with one of our professionals in Bedfordshire, Hertfordshire, or Cambridgeshire, contact us today.

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