HM Revenue & Customs (HMRC) is due to mandate a new P87 form which will come into effect from 7 May.

Both workers and their agents can use a P87 form to claim tax relief on work expenses (work uniform, or professional subscriptions, for example).

The form can only be used for claims relating to an employee and not to a self-employed individual, who should instead claim tax rebates via the Self-Assessment system.

If a taxpayer is employed by more than one entity, each employment will require a separate P87 form to be submitted in the event of any refunds being claimed.

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 on the GOV.UK website.

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 non-compliant applications (i.e., containing attachments). These will be subject to longer processing times as a result of necessitating manual input.

In its new format, the P87 form will deal with multi-year claims and will have space for detail spanning up to five employments.

Claims made on substitute claim forms will not be accepted, but the other options outlined above will still be available.

For professional advice on this and other tax-related matters, please contact me or a member of our team by visiting or calling 01767 315010.

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