Changes to Form P87
HMRC announced that with effect from the 14th of October 2024, new evidence will be required when individuals claim tax relief on employment related expenses via the P87 form.
This form can only be used to claim low level expenses up to ￡2,500 per year, if expenses exceed this amount, a Self-Assessment claim will need to be filed.
HMRC will require evidence of expenses claimed so that they can verify eligible claims before proceeding with the application.
In a statement they announced: “We want to make sure customers get the tax relief they are entitled to in the most straightforward way possible. At the same time, we need to identify ineligible claims and prevent payments they are not entitled to”. ?
To this end, HMRC confirmed that they will check all evidence provided, and at which point they will confirm whether the claimant is entitled to tax relief or not. A summary of the information required to verify some claims are:
Professional fees and subscriptions
You must send copies of receipts or other evidence that show how much you paid for each professional fee or subscription you’ve claimed.
Uniform, work clothing and tools
If you claim an agreed fixed amount (a?‘flat rate expense’), you do not need to send evidence.
If you claim tax relief for the exact amount you’ve spent on your uniform, work clothing, or tools, you must send copies of your receipts or other evidence which proves you’ve paid for the item.
Vehicles you use for work
You must send copies of your mileage logs, these must include:
Working from home
You need to send evidence that you must work from home, such as a copy of your employment contract. If it’s not stated in your contract, you need to send something else that proves you must work from home.
If you choose to work from home, you cannot claim for this expense.?
Claims can be made within 4 years from the end of the tax year that the claim relates to.
Employees are responsible for ensuring that any changes to claiming tax relief for example, where the employer changes their policy and fully reimburses business expenses to the flat rate limits etc., they must advise HMRC to ensure Tax codes are appropriately amended in a timely manner.